good inflation. In addition, the Ramsey optimal monetary policy can be approximated reasonably well with a Taylor …-type interest rate rule with weights on both inflation rates and output. -- Inflation and Output Persistence ; Monetary Policy …

output of durable and nondurable goods following a monetary policy shock. We show that heterogeneous factor markets allow any … output and inflation, as observed in a vectorautoregression analysis. In contrast to backward indexation to past inflation …, which is often assumed in the literature, sticky information leads to a hump-shaped response in the inflation of flexibly …

persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation … cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions … employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to …

policy analysis. It suggests that the best method of solving the puzzle implies a close connection between theory and …

parameter and inflation shock. Moreover, the paper discusses this covariance in the light of the microfoundations of the hybrid … normalizing and imposing independence conditions lead to distinct specifications of the covariance between inflation persistence … New Keynesian Phillips-curve, finding inflation persistence to be non-orthogonal to shocks …

-term inflation volatility in response to exogenous shocks can be optimal; that the optimal response to adverse financial shocks is to … lower interest rates, if not at the zero bound, and to engineer a short period of inflation; that the Taylor rule may …

This paper extends a standard New Keynesian model to describe the effects of anticipated shocks to inflation and …

An immigration shock has an ambiguous effect on inflation. On one hand, aggregate consumption increases with a suddenly …. The response of an inflation-targeting central bank to an immigration shock is, therefore, not obvious. We study these … are designed to characterize the possible response of inflation and monetary policy in Chile, a small open emerging …

persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation … cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions … employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to …

shock. The changes in the responses of sectoral inflation rates are entirely driven by services deepening … endogenously over time. The rise of services dampens the responses of aggregate and sectoral inflation rates to a monetary policy …