good approximation of U.S. inflation dynamics. By contrast, if the same estimates are constrained to yield a unique stable …

This paper shows the way how persistent world inflation shocks hitting a small open economy can re-weight the … inflation. We derive a state-dependent Phillips curve based on translog preferences that make the elasticity of substitution of … disinflation on domestic inflation, as experienced in small open economies such as New Zealand, Chile and Peru. …

This paper analyses the role of inflation expectations in the euro area. On one hand, the question is how inflation … expectations affect both inflation and output, and, on the other hand, how inflation expectations reflect developments in these … variables. The analyses make use of a simple VAR model of inflation, inflation expectations and the output gap that allows for …

where wage inflation has been very low for many years in the 1990s. We find that the rigidity of nominal wages is a robust …Recent studies found evidence for nominal wage rigidity during periods of relatively high wage inflation. It has been … argued, however, that in an environment with low wage inflation, when nominal wage cuts become customary, workers’ opposition …

in principle less restrictive approach is applied to operationalising expectations. Direct measures of inflation … expectations, ie OECD forecasts, are used as empirical proxies of economic agents’ inflation expectations. The main interest is in … the euro area as a whole, although potential heterogeneity of inflation dynamics is also examined across eleven EMU …

of the two. We compare the accounting definition of deficit with the economic definition which takes inflation into …

mechanism of "sticky wages and prices". Hitherto, such theories of inflation have remained unproven and disputable. Recently … inflation, has remained unexplained in terms of its mathematical origins. Keynes had attempted to relate inflation to a …, during the so-called "New Economy" era, characterized by a spread of electronic transactions and Internet commerce, inflation …

welfare, since it often reduces the union’s utility. In particular, we show that an inflation-neutral union will never find it …

. This was a period of very low inflation. The rate of growth in the aggregate price level was occasionally very close to … inflation. The declining prices cannot, however, be explained by lack of demand or any generalized deflationary tendencies … develops a new method for looking at the composition of inflation and illustrating how relative price dynamics interact with …