Coenen, Günter; Lombardo, Giovanni; Smets, Frank; … - 2008
indexed to
past inflation. In order to account for the less than full pass-through of the exchange rate,
we also assume that … interest rate rule, linking the interest rate to inflation and
output.
6
ECB
Working Paper Series No 858
January 2008
The … firms, on the contrary, can explain up to about 50
percent of the volatility of inflation and turns out to be also the …