Empirical models of inflation often incorporate equilibrium correction effects based upon levels of prices and input … permanent shifts in the markup factor through estimating an inflation equation that includes a time-varying intercept. The model …

The paper presents an incomplete competition model (ICM), where inflation is determined jointly with unit labour cost … growth. The ICM is estimated on data for the Euro area and evaluated against existing models, i.e. the implicit inflation …. There is, however, some support in favour of the (reduced form) AWM inflation equation. It is the only model that …

policy reaction function shows the central bank striking a balance between real exchange rate stability and containing … inflation. We discuss dollarization, administrative interventions, and other features complicating monetary policy transmission …

Various inflation forecasting models are compared using a simulated out-of-sample forecasting framework. We focus on … the question of whether monetary aggregates are useful for forecasting inflation, but unlike previous work we examine a … are also reported on. The first shows that cointegration vector parameter estimation error is crucial when using VEC …

with a switching intercept term. Of course, this likely leads to a rejection of cointegration by standard tests and to the …

unemployment. Our model succeeds in replicating the empirical fact of a downward sloping Phillips curve for low inflation rates and … an upward sloping curve for high inflation rates. The reason is that low inflation rates make saving, as opposed to …, when inflation exceeds a certain threshold, money is too costly to hold, which results in a decrease in output and an …

This paper studies the issue of whether money contains useful information about future inflation in a panel of nine … developed countries. A low frequency estimate of excess money growth is compared to an estimate of the inflation trend following … the discussion in Woodford (2007). The empirical analysis shows that money contains more information about future CPI-inflation …

This paper provides an overview of inflation developments in Vietnam in the years following the doi moi reforms, and … uses empirical analysis to answer two key questions: (i) what are the key drivers of inflation in Vietnam, and what role … does monetary policy play? and (ii) why has inflation in Vietnam been persistently higher than in most other emerging …