stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …

of the New Keynesian Phillips Curve (NKPC) is that they fail to capture the extent of inflation inertia in the data. In …

, inflation targeting remains robustly optimal in non-U.S. economies. The implementation of this non-cooperative policy results in … inflation targeting to take advantage of its effects on global product and asset markets, generating negative spillovers on the …

ability to explain the facts, such that the theory supports both a negative and a positive response of inflation. Central to … inflation at near-zero nominal interest rates. We show how (conventional and unconventional) monetary policy shocks enlarge the …

, thereby controlling inflation expectations, it can improve welfare by stabilizing short-run aggregate shocks. The optimal …

impact inflation, little crowding out of private expenditure exists, and the multiplier tends to be larger compared to a one …