Since the 2001 recession, average core inflation has been below the Federal Reserve's 2% target. This deflationary bias … corrects the bias and brings inflation back on target. Adopting this asymmetric rule improves welfare and reduces the risk of …

prices and markups following the introduction of an official inflation target of 2 percent. Using a structural model to … price-change dispersion can be attributed to a decrease in the cross-sectional variance of inflation expectations. The lower … dispersion of inflation expectations results in a lower markup dispersion and a welfare gain equivalent to a 0.79 percent …

changing nature of inflation dynamics. We estimate a series of VAR models for a set of six Asian emerging market economies, in … parts of inflation and output dynamics. The global shocks are procyclical with respect to the domestic components of …

This paper presents a comprehensive examination of the determination and evolution of inflation expectations, with a … focus on emerging market and developing economies (EMDEs). The results suggest that long-term inflation expectations in …. Indeed, in EMDEs, long-term inflation expectations are more sensitive to both domestic and global inflation shocks. However …

prices and markups following the introduction of an official inflation target of 2 percent. Using a structural model to … price-change dispersion can be attributed to a decrease in the cross-sectional variance of inflation expectations. The lower … dispersion of inflation expectations results in a lower markup dispersion and a welfare gain equivalent to a 0.79 percent …

We study how changes in the steady-state real interest rate affect the optimal inflation target in a New Keynesian DSGE … model with trend inflation and a lower bound on the nominal interest rate. In this setup, a lower steady-state real interest … rate increases the probability of hitting the lower bound. That effect can be counteracted by an increase in the inflation …