-neutrality; leads to a strong positive correlation between inflation and output; and contributes significantly to output volatility. We …

pronounced increase of aggregate US producer price inflation. …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation … increased, we find that, as of September 2002, with the exception of Japan, there is no evidence of substantial deflation risks …. We also put the estimates of deflation risk for the United States, Germany and Japan into historical perspective. We find …

channel through which monetary policy lowers the volatility of inflation and, even more importantly, output. …

competition to influence domestic inflation. By comparing the unrestricted and restricted specifications, we provide evidence that … foreign competition plays an important role in accounting for the behavior of inflation in the traded goods sector. Our … inflation in the 1990s. Our results also provide evidence against demand curves with a constant elasticity in the context of …

cumulative inflation and real growth responses, some countries such as Italy, France and Japan have fared well when faced with … concentrated in the second year after the shock. (2) Inflation responses are more varied. The median CPI inflation response peaks … consumer price inflation. Evidence of sustained inflation (as in the case of Germany) therefore must reflect a favorable …

producers. I apply these results to a model of inflation. I find that the model can fit the quantitative facts on post …-war inflation remarkably well, that it is a good forecaster of future inflation, and that it survives the Lucas critique by fitting … also the pre-war facts on inflation moderately well. …

%) and fairly high (7%) inflation. Our results indicate that firms strongly react to inflation in the timing of their price … adjustment: hazard of price changes is increasing with time and becomes steeper at higher inflation rates. However, we find … little evidence that the amount by which they change the price responds to the inflation rate. …