. We use a microfounded New Keynesian model of a monetary union which incorporates persistence in inflation, and examine … non-cooperative interactions of fiscal and monetary authorities. We find that particularly when inflation is persistent …

The ongoing trend of high inflation across much of the world has reignited interest in inflation volatility with … varying foci and methods. In this paper, we employ a Bayesian framework to estimate inflation volatility using a sample of G20 … countries. Estimation results suggest persistent heterogeneity in price volatility across time and countries. Furthermore, we …

The purpose of this short paper is to show that inflation “band” targeting can solve the “time inconsistency” problem … that exists under inflation “point” targeting by setting a relevant target range. Moreover, we show that inflation band … natural levels, by setting the inflation rate within a target range and creating unexpected inflation. 2) It can mitigate …

aggressiveness, negative supply shocks, and upward commodity price shocks all contribute to conflict inflation. They do so via two …This paper presents a new formulation of conflict inflation labeled the "pass-through" approach, which contrasts with … the existing "pressure balance" approach. The model generates Phillips styled inflation - unemployment dynamics that are a …

alternative monetary policy strategies. We start with the relationship between output and inflation and investigate the fit of the … reject the nominal contracting model in favor of the relative contracting model which induces more inflation persistence, we … in countries which transitioned out of a high inflation regime such as France and Italy. We close the model by estimating …

independence and inflation. In this paper, we construct a theory where the relationship between inflation and central bank … inflation or costly fiscal expansion) rejects the monetary policy proposal of the central bank (which aims to minimize inflation …, increasing the fixed cost of rejecting the central bank's offer creates two opposite effects on inflation: delegation effect and …

purposes of price measurement. For business-to-business transactions, these shifts can cause sourcing substitution bias in the … Producer Price Index (PPI) and the Import Price Index (MPI), as well as potentially in the proposed new true Input Price Index … sales or among retailers charging different per unit prices, this can cause a promotions bias problem in the Consumer Price …