decline in the level of inflation. Comparing Switzerland with the rest of the world, we show that while Swiss real interest … interest rates, exchange rate growth, and inflation. We then decompose the Swiss long-term interest rate trend into various … rates were higher during the 19th century, the pattern reversed after World War 2 with Swiss nominal and real rates becoming …

This document proposes a general macroeconomic framework to analyze the behavior of inflation. This approach has two … price level. When all shocks have a permanent impact, the regime determines the inflation rate, as in inflation targeting … cause the rate of inflation or the price level. With this, a new perspective on four different historical cases emerges. One …

Forecasts of inflation in the United States since the mid eighties have had smaller errors than in the past, but those … their own "Great Moderation." For those countries that did not attain macroeconomic stability, inflation forecasting … monetary regime does, makes possible the estimation of parsimonious inflation models for all available data (eight decades for …

), the problem of instability is simply transferred to inflation rate differentials, what we call the (impossibility of the …) "uncovered inflation rate parity condition" in a monetary union. The analysis of the actual divergences and imbalances in the EMU …, then, suggests that failure to respect the "uncovered inflation rate parity condition" in a monetary union may lead to …