-run inflation rate is positive and between 0.5% and 1.5% per year. A positive long-run inflation rate helps the fast-growing new … without learning-by-doing in new firms predicts an optimal long-run inflation rate near zero. In a two-sector model with …

optimal long-run inflation rate is positive and between 0.5% and 1.5% per year. A positive long-run inflation rate helps the … sticky-price model without learning-by-doing in new fi rms predicts an optimal long-run inflation rate near zero. In a two …

commiting to keep interest rates low at the exit of the liquidity trap, to stabilize inflation today. 2. From debt … consolidated budget) monetary policy becomes subservient to fiscal policy, giving rise to more volatile inflation, output and … interest rates. Liquidity trap (LT) episodes are longer, however, the impact of interest rate policy commitments on inflation …

Inflation and earnings growth can push some tax payers into higher brackets in the absence of inflation …-indexed schedules. Moreover, inflation may affect the composition of individuals' income sources. As a result, depending on the relative … tax burden of labor and capital, inflation may decrease or increase the difference between before and after-tax income …

that our "effective" approach is superior when it comes to assessing the impact of exchange rate regimes on inflation … trading partners. Using our measure of effective exchange rate regimes in a standard empirical analysis of inflation … associated with significantly lower inflation rates. This challenges the established view that soft pegs do not matter - or are …

Inflation expectations play a crucial role for monetary policy transmission, having become even more important since … determinants of professional inflation expectations for the G7 economies. We emphasize the role of international spillovers in … inflation expectations stemming from monetary policy decisions in the US. We also consider several possible determinants, such …