Bei Vorliegen nach unten starrer Nominallöhne erschwert niedrige Inflation Reallohnanpassungen und führt so … Auswirkungen bei sehr niedriger Inflation nicht zu vernachlässigen sind. Die Ergebnisse dieser Literatur sollten daher bei der …In the presence of downwardly rigid nominal wages, low inflation may lead to higher equilibrium unemployment by …

employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

This paper provides new survey evidence on firms' inflation expectations in the euro area. Building on the ECB's Survey … on the Access to Finance of Enterprises (SAFE), we introduce consistent measurement of inflation expectations across … firms' inflation expectations and show that firms disagree about future inflation more than professional forecasters but …

In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating … stabilize price movements in the flexible price sector. Also, in the presence of financial frictions, stabilizing core inflation … is no longer equivalent to stabilizing output fluctuations. Our analysis suggests that in the presence of financial …

period. The workers' bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence … cost determination. This set-up produces realistic labor market statistics together with inflation persistence …

In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize … is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting … headline inflation, assigns zero weight to import prices. …

In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating … stabilize price movements in the flexible price sector. Also, in the presence of financial frictions, stabilizing core inflation … is no longer equivalent to stabilizing output fluctuations. Our analysis suggests that in the presence of financial …

This paper provides a new explanation of why inflation is sluggish in response to aggregate demand shocks and why … takes considerable time for cost and price changes to penetrate the entire input-output system. Our analysis provides a … rationale for a prolonged inverse relation between inflation and unemployment. The paper suggests that the interaction of …