Foreign price shocks have significant effects on functional income distribution and on inflation inequality. By … increasing prices in domestic currency that are linked to foreign prices, they increase the profit share in some sectors and ….g. food prices for low-wage workers). Based on the conflicting-claims inflation literature, we propose a new extension to this …

initial macroeconomic conditions of the simulations correspond to the high inflation environment of early 2022. The simulation … rational expectations for all Taylor rule parametrisations. Under hybrid expectations, the inflation rate is much more … persistent than under the rational expectations; three years is not enough to reach the inflation target of two percent, even for …