by nearly double-digit inflation and undergoing massive changes in market structure during the process of transition and …-linear. Product-specific inflation is typically highly persistent. We find that market structure is an important determinant of … depends negatively on the price dispersion and positively on the individual inflation, seems consistent with predictions of …

the absence of entry. Specifically, a long-run positive (negative) rate of inflation is optimal when the benefit of … by the desired markup. Plausible preference specifications and parameter values justify a long-run inflation rate of two …

factor-augmented vector autoregression estimated on a large data set. On the basis of this estimation, we establish eight … facts: (1) Macroeconomic shocks explain only about 15% of sectoral inflation fluctuations; (2) The persistence of sectoral … inflation is driven by macroeconomic factors; (3) While disaggregated prices respond quickly to sector-specific shocks, their …

The Calvo contract Phillips Curve is widely indexed for general inflation, using either core inflation or other … that optimal indexation would by contrast use the rational expectation of inflation. If this scheme is implemented, the …

In this paper, we formulate a statistical model of inflation that combines data on survey expectations and the … inflation target set by central banks.. Our model produces inflation forecasts that are aligned with survey expectations … the inflation target set by the monetary authority to examine the effectiveness of monetary policy in forming inflation …

We survey recent literature comparing inflation targeting (IT) and price-level targeting (PT) as macroeconomic … conclusion that PT improves the inflation-output volatility trade-off in New Keynesian models is reasonably robust to these …

The paper provides an empirical analysis of inflation persistence in one of inflation targeting countries, the Czech …, display smaller inflation persistence than durables and processed goods. Inflation seems to be somewhat less persistent after … the adoption of inflation targeting in 1998. There is also evidence for aggregation bias, that is, aggregate inflation is …

United States during the 1990s. Proponents of this approach recommend that, when inflation is moderate but still above the … long-run objective, the central bank should not move immediately to fight inflation, but rather wait for exogenous … circumstances — such as favourable supply shocks and unforeseen recessions — to deliver the desired reduction in inflation. While …

inflation rates as low as 2%. The effects of the constraint are, however, non-linear with respect to the inflation target and … variability of output increases significantly and that of inflation also rises somewhat. Also, we show that the asymmetry of the … short of potential with lower inflation targets. …