In this paper we evaluate the relative influence of external versus domestic inflation drivers in the 12 new European … well supported in the new EU member states. We also find that the inflation process is dominated by domestic variables in …

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 …

relationship between inflation and real marginal cost cannot be established empirically for a majority of countries and sectors. We … NKPC for the analysis of inflation dynamics and monetary policy in the Euro Area. …

It is commonly asserted that inflation is a jump variable in the New Keynesian Phillips curve, and thus wage …-price inertia does not imply inflation inertia. We show that this "inflation flexibility proposition" is highly misleading, relying … affect inflation, but are also influenced by it) the phenomenon of inflation inertia re-emerges. Under plausible parameter …

fraction of price changes increases with inflation. In addition, in the presence of strategic complementarities, they predict …

, consistent with the evidence, increases with inflation. Because we assume that firms sell multiple products and choose how many … inflation accelerator-a feedback loop between inflation and the fraction of price changes-that significantly increases the slope … of the Phillips curve during periods of high inflation. Applied to the U.S. time series, our model predicts that the …

with the data. Then it combines the evolution of wages predicted by this model with the evolution of prices predicted by … staggered-price models to provide a model of the joint determination of prices and wages, given the evolution of real quantities …

inflation. Taking as given the paths of nominal labor compensation and labor productivity to approximate the evolution of …

cyclical movements in Treasury bond premia. Downward nominal rigidities create state-dependence in output and inflation … dynamics: a higher level of inflation makes prices more flexible, leading output and inflation to be more volatile, and bonds … to become more risky. The model matches well the relation between the level of inflation and a number of salient macro …

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 …