The existence of nominal rigidities and inflation differentials between countries offers two of the main rationales for … an inflation buffer in a monetary union where monetary policy is oriented towards an area-wide inflation objective … strong argument for a positive inflation buffer to “grease the wheels” of the euro area economy – also in order to avoid the …

The existence of nominal rigidities and inflation differentials between countries offers two of the main rationales for … an inflation buffer in a monetary union where monetary policy is oriented towards an area-wide inflation objective … strong argument for a positive inflation buffer to “grease the wheels” of the euro area economy – also in order to avoid the …

a rationale for the practice of inflation zone targeting. We show that the presence of either zone-quadratic preferences … or a zone-linear relationship between inflation and economic activity provides strong incentives to deviate from … structure and relative preference towards economic stability in determining the width of the implied targeted inflation zone …

A number of studies document the prominent role of global factors in domestic inflation developments (e.g. Borio and … Filardo, 2007; Ciccarelli and Mojon, 2010). In this paper we investigate global dimensions of advanced economy inflation. We … inflation expectations and augment Phillips curves with global factors including global economic slack, global inflation and …

Long-term inflation expectations in the euro area reached historically low levels at the end of 2019, suggesting a … possible de-anchoring from the European Central Bank’s “below, but close to, 2 per cent” inflation aim. The decline in long …-term inflation expectations exerted a downward pressure on inflation between 2014 and 2016, and in 2019. Counterfactual simulations …

This paper considers a sticky price model with a cash-in-advance constraint where agents forecast inflation rates with …. While average output and inflation result the same as under rational expectations, higher moments differ substantially …: output and inflation show persistence, inflation responds sluggishly to nominal disturbances, and the dynamic correlations of …

This country note discusses measures of inflation used in monetary policy formulation in Singapore, and assesses the … relative influence of global and regional factors in determining domestic inflation dynamics. It is found that the regional … inflation expectations have continue d to play significant roles. Indeed, the central bank's gauge of inflation expectations …

We introduce a new measure called Inflation-at-Risk (I@R) associated with (left and right) inflation tail risk. We … estimate I@R using survey-based density forecasts. We show that it contains information not covered by usual inflation risk … indicators which focus on inflation uncertainty and do not distinguish between the risks of low or high future inflation outcomes …

The paper examines a wide variety of models forecasting inflation, consumer survey, professional survey, judgmental … mark a return to inflation below central bank targets, but there is no visibility for timing of this development …

U.S. monetary policy can remain extraordinarily accommodative only if longer-term inflation expectations stay well … economically small impact on longer-term inflation compensation embedded in U.S. Treasury bonds. The estimated effect is larger for … correlated with the variance of longer-term inflation expectations in the University of Michigan Survey of Consumers in the post …