-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 …

We develop a theoretical framework to account for the observed instability of the link between inflation and fiscal … bank that has full control over inflation. When policy makers deviate from this Virtuous regime, agents conduct Bayesian … pessimistic about a prompt return to the Virtuous regime and inflation starts drifting in response to a fiscal imbalance. Shocks …

consider a COVID recession resulting from a negative demand shock and a surge in exogenous separations. Highproductivity …

The speed of inflation adjustment to aggregate technology shocks is substantially larger than to monetary policy shocks …