In the past five years, the inflation in the euro area has been well below the European Central Bank’s (ECB) aimed … inflation rate of close to but below two percent for achieving its objective of price stabilization in the medium term. The … present analysis shows that expectations of low inflation, rising cyclical unemployment, and external factors such as low …

This paper presents the New Keynesian Phillips Curve (NKPC) -based framework for analysing euro area inflation outlook …. Our NKPC specification, that relies on market- and survey-based inflation expectations, explains well euro area inflation … long-horizons. Overall, the NKPC is a useful tool for monitoring euro area inflation outlook. Thanks to its fast and light …

sharp rise in inflation. Applied to Germany and the euro area, the model suggests that the surge in inflation has mainly … been caused by commodity price shocks and supply bottlenecks, rather than shortages in the labour market. Inflation … future inflation rates. However, this prediction is based on the assumption that there will be no commodity price shocks and …

We study whether the trade-off between inflation and unemployment still exists in the euro area (EA). Using country …. (2022) deploying a non-tradable price index to measure inflation. We find that the slope of the Phillips curve is small and … overstate the steepness of the Phillips curve considerably. Our findings imply that the insensitivity of inflation with respect …

monetary policy. The focus is on inflation dynamics and all three studies involve some approach of forecasting. The first … chapter deals with estimation problems of a monetary policy rule and inflation dynamics. In light of potential weak instrument …. These factors are used to instrument the public's unobserved inflation expectations prevalent at each point in time. The …

imposing rational expectations, direct measures, ie OECD forecasts, are used to proxy economic agents' inflation expectations … Classical and Hybrid Phillips curves. We interpret our results as indicating that the European inflation process is not purely … forwardlooking, so that inflation cannot instantaneously adjust to new information. Consequently, even allowing for possible non …