exercises reveal a trade off between low-inflation and high-welfare solutions and favour of a floating exchange rate regime …

area (EA) and the US. The estimations show that until mid-2014 the ECB's response to inflation was more forceful when … inflation was above 2% than below 2%. Since then, the ECB's policy can be characterised as symmetric, and we quantify the … bound and a low neutral real rate, and find that it prescribes a stronger response to inflation and the output gap when …

Economic theory traditionally suggests that monetary policy can influence the business cycle, but not the long …-run equilibrium properties, results offer overall support for the traditional economic theory …

In this paper, I use high-frequency financial market estimates to identify the monetary policy shock in a non …

This paper develops and estimates a game-theoretical model of inflation targeting where the central banker …

Real wages are a key determinant of marginal costs. The latter themselves are a driving force of inflation. We ask how … wages and labor market shocks feed into the inflation process. We model search and matching frictions in the labour market …

-makers are allowed to weight differently positive and negative deviations of inflation and output from the target values. Reduced … expansions of the same magnitude. This asymmetry is shown to induce an average inflation bias of 1.11% that appears to have … substantially contributed to the great inflation of the 1960s and 1970s …