inflation risk. We calculate the term structure of inflation uncertainty in New Keynesian models when the monetary authority … achieves equilibria with substantially lower long-run inflation risk. With either sticky prices or sticky wages, a price path … target reduces the variance of inflation by an order of magnitude more than it increases the variability of the output gap …

The relationship between inflation and inflation uncertainty is investigated in six European Union countries for the … of inflation uncertainty and then Granger methods are employed to test for causality between average inflation and … inflation uncertainty. In all the European countries except Germany, inflation significantly raises inflation uncertainty as …