aggregate demand still can cause significant inflation. …

Empirical evidence suggests consumers rely on their shopping experiences to form beliefs about inflation. In other …. Learning by shopping anchors households' beliefs about inflation to its past, causing disagreement with firms over the value of … inflation, increases the degree of anchoring of households' inflation expectations, and flattens the slope of the Phillips curve …

This paper discusses the likely evolution of U.S. inflation in the near and medium term on the basis of (1) past U ….S. experience with very low levels of inflation, (2) the most recent Japanese experience with deflation, and (3) recent U.S. micro … evidence on downward nominal wage rigidity. Our findings question the view that stable long-run inflation expectations and …

Recession, inflation did not decrease as much as predicted by linear Phillips curves, a phenomenon known as the missing … response of inflation to an increase in unemployment slower in the region where unemployment is already high. Nonlinearities … inflation or financial frictions. However, studying a range of specifications with different measures of inflation and economic …

The remarkable stability of low domestic inflation in many countries requires explanation. In this paper, a number of … continuing low inflation, but also its coexistence with rapid growth and low real interest rates. Unfortunately, the analysis …

inflation - is a central determinant of welfare, the cost of business cycles, the optimal rate of inflation, and the tradeoff … between inflation and output stability. While the comovement of price dispersion and inflation implied by standard models is … the data, the comovement of price dispersion and inflation turns positive. Nevertheless, I show that a wide variety of …

analysis proves that a higher degree of central bank independence would statistically improve the inflation performance in the … entire region and in the two subsamples, basically by lowering the inflation rates level and decreasing volatility. Finally …

This document studies the recent evolution of the break-even-inflation implicit in the yields of long-term financial … instruments in Mexico. In particular, it analyzes the dynamics of its main components: the long-run inflation expectation and the … components. This reflects, on the one hand, the progressive convergence of the estimated inflation expectation to Banco de México …

This paper estimates a hidden Markov model where inflation is determined by government deficits financed through money … inflation expectations. The estimated sequence of monetized deficits provides an adequate account of inflation for the period … 196994. The paper then extends the model to analyze the possibility that fiscal policy can affect inflation expectations in a …

We explore the dynamics of inflation, inflation expectations, and seigniorage-financed fiscal deficits in Mexico. To do … so, we estimate the model in Sargent, Williams, and Zha (2009) using Mexican CPI inflation data. This model features dual … expected inflation equilibriums and regime switching in the mean and variance of the fiscal deficit probability density …