Arias, Jonas; Ascari, Guido; Branzoli, Nicola; … - 2022
trend inflation during Volcker's mandate was a key factor behind the Great Moderation. We revisit this finding with an … estimated New-Keynesian model with trend inflation and no indexation based on Christiano, Eichenbaum and Evans (2005). First …, our simulations confirm Coibion and Gorodnichenko's (2011) main finding. Second, we show that a trend inflation …