In this paper we estimate the hybrid New Keynesian Phillips curve for nine transition economies and examine its ability to explain inflation dynamics. Special emphasis has been made on obtaining a measure of expected inflation directly from consumer surveys via the probability method, as opposed...

The paper provides an empirical analysis of inflation persistence in one of the inflation targeting countries, the Czech Republic, using 412 detailed product-level consumer price indexes underlying the consumer basket over the period from 1994:M1 to 2005:M12. Subject to various sensitivity...