We provide a simple theory of inflation inertia in a staggered price setting framework a la Calvo (1983). Contrary to …

policy shocks on aggregate consumption and for the impact on inflation that other models have hard a time explaining. In … particular, the model can account both for the price puzzle and for inflation persistence. We also show that the deep habits …

arises, which affects optimal markups chosen by oligopolistic firms. The model generates a short-term inflation-output trade … of newly injected money. Furthermore, a liquidity effect, countercyclical markups, procyclical profits and marginal costs …

a Phillips curve specification, where changes in the price level are a function of expected inflation and the marginal …

interdependency of national monetary policies, which is sometimes measured by the degree of inflation transmission across borders. In … this paper, we examine how inflation rates in two small open economies, namely Hong Kong and Singapore, interact with that … model is used to study the inflation dynamics. It is found that Hong Kong and Singapore inflation rates, but not the U …

We study the evolution of inflation aversion preferences across generations. In the theoretical part of the paper, we … different degrees of inflation aversion. We show how the stability of a society’s degree of inflation aversion depends on the … of the theoretical results. We first link demographic structures to inflation aversion, and then proceed by looking at …

, thus allowing a comparison of the relevance of domestic versus external determinants of CPI inflation dynamics. For most … countries in our sample the expected relative change in the terms of trade emerges as a more relevant inflation driver than the …

This paper evaluates the inflation density forecasts published by the Swedish central bank, the Sveriges Riksbank …. Realized inflation outcomes are mapped to their forecasted percentiles, which are then transformed to be standard normal under … the null that the forecasting model is good. Results suggest that the Riksbank?s inflation density forecasts have a …