Search Results - subject:"Inflation inertia"

Real wage rigidities and the new Keynesian model

Blanchard, Olivier; Galí, Jordi - Department of Economics and Business, Universitat … - 2005

Most central banks perceive a trade-off between stabilizing inflation and stabilizing the gap between output and desired output. However, the standard new Keynesian framework implies no such trade-off. In that framework, stabilizing inflation is equivalent to stabilizing the welfare-relevant...

Persistent link: https://www.econbiz.de/10005772405

The Optimal Inflation Buffer with a Zero Bound on Nominal Interest Rates

Billi, Roberto M. - Society for Computational Economics - SCE - 2005

inflation inertia would significantly underestimate the inflation buffer. If the central bank follows the prescriptions of a …

Persistent link: https://www.econbiz.de/10005706291

The Optimal Inflation Buffer with a Zero Bound

Billi, Roberto - Center for Financial Studies - 2005

inflation inertia would significantly underestimate the inflation buffer. If the central bank follows the prescriptions of a …-looking version of the model that abstracts from inflation inertia would significantly underestimate the inflation buffer. If the …52 Keywords: Inflation Inertia, Downward Nominal Rigidity, Nonlinear Policy, Liquidity Trap 1 Introduction The …

Persistent link: https://www.econbiz.de/10005138843

The optimal inflation buffer with a zero bound on nominal interest rates

Billi, Roberto M. - 2004

inflation inertia would significantly underestimate the inflation buffer. If the central bank follows the prescriptions of a …

Persistent link: https://www.econbiz.de/10010298268

Inflation Inertia and Monetary Policy Shocks

Lendvai, Júlia - 2004

inflation and output persistence. The assumption of inflation inertia improves a model?s performance of reproducing inflation … persistence and the dynamic inflation-output link. A significant improvement requires high intensity of inflation inertia. The fit …

Persistent link: https://www.econbiz.de/10010494336

Inflation Inertia and Monetary Policy Shocks

Lendvai, Julia - Közgazdaság-tudományi Intézet, Közgazdaság- és … - 2004

Persistent link: https://www.econbiz.de/10005404551

The optimal inflation buffer with a zero bound on nominal interest rates

Billi, Roberto M. - Center for Financial Studies - 2004

inflation inertia would significantly underestimate the inflation buffer. If the central bank follows the prescriptions of a …

Persistent link: https://www.econbiz.de/10010958640

Partial Indexation, Trend Inflation, and the Hybrid Phillips Curve

Sahuc, Jean-Guillaume - Centre d'Études des Politiques Économiques (EPEE), … - 2004

This note proposes a full description of the Calvo price-setting model based on partial prices indexation and studies the interaction between partial indexation and trend inflation. We show that to use a hybrid version of the Phillips curve partly decreases the risks of overestimate due to the...

Persistent link: https://www.econbiz.de/10010939355

Partial Indexation and Inflation Dynamics: What Do the Data Say?

Sahuc, Jean-Guillaume - Centre d'Études des Politiques Économiques (EPEE), … - 2004

We provide new evidence on the fit of the hybrid Phillips curve based on indexation of prices to lagged inflation and trend inflation for the Euro area and the United States over the period 1970-2002. The GMM-West estimates suggest that (i) a full indexation scheme is not data consistent whereas...

Persistent link: https://www.econbiz.de/10010939364

Partial Indexation, Trend Inflation, and the Hybrid Phillips Curve

Sahuc, J-G. - Banque de France - 2004

This paper proposes a full description of the Calvo price-setting model based on partial prices indexation and studies the interaction between partial indexation and trend inflation. We show that using a hybrid version of the Phillips curve partly decreases the risks of overestimate due to the...

Persistent link: https://www.econbiz.de/10005056511