like those which appear to be typical in Germany …

exchange rate overshooting to undershooting. Using constrained maximum likelihood methods, the model is estimated for Germany …

reduced to a tractable canonical system in domestic inflation and the output gap. We employ this framework to analyze the … macroeconomic implications of three alternative monetary policy regimes for the small open economy: domestic inflation targeting … exchange rate volatility that they entail. We also discuss a special case for which domestic inflation targeting constitutes …

A relation between inflation and the path of average marginal cost (often measured by unit labor cost) implied by the … is shown to again take the standard "new-Keynesian" form, but with an elasticity of inflation with respect to real …

perspective on the linkages among monetary policy, inflation, and the business cycle. It is argued that the adoption of an …

inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after …

monetary policymaking. First, we discuss why trimmed means provide the best measure of core inflation. Second, we outline how … rigidities impede policymakers' ability to control inflation. And third, we describe how alternative shock/rigidity combinations … create inflation's grease (whereby it improves economic efficiency by speeding adjustment) and sand effects (whereby it …

-order beliefs, or the agents' forecasts of inflation. We highlight the distinct role of higher-order beliefs with three extensions …