Trabandt, Mathias (contributor) - 2007
How can we explain the observed behavior of aggregate inflation in response to e.g. monetary policy changes? Mankiw and … view that i) inflation reacts with delay and gradually to a monetary policy shock, ii) announced and credible disinflations … are contractionary and iii) inflation accelerates with vigorous economic activity. I use a fully-fledged DSGE model with …