We tackle two questions in this paper: In the sovereign debt crisis, what moves the euro area inflation outlook and has … the firm anchoring of medium to long-term inflation expectations been touched? Deriving densities from a new data set on … options on the euro area harmonized index of consumer prices provides us with the full distribution of inflation expectations …

We assess the effects of financial shocks on inflation, and to what extent financial shocks can account for the … shocks through sign restrictions. Our main finding is that expansionary financial shocks temporarily lower inflation. This … during the latest financial crisis. We then explore the transmission channels of financial shocks relevant for inflation, and …

strengthen the countercyclical behavior of markups and attenuate the response of inflation to fluctuations in output …

past decade. The reason is that elevated levels of inflation, while normal in a post-pandemic economy, are threatening to … morph into a Great Inflation-level event. Many people do not appreciate that the Great Inflation was a stretch of U …-down. This paper explains the fundamental dynamics of the Great Inflation, and why the Federal Reserve is unlikely to allow it to …

. Examples include the Financial Panic of 1914, the Post-World War I/Great Influenza inflation of 1919-1920, the Dot-com bubble …