We use a simple New Keynesian model, with firm specific capital, non-zero steady-state inflation, long-run risks and … rate by 150 basis points causes output and inflation volatility to rise around 10% above their steady-state standard … deviations from the policy rule and the results are re-enforced by the presence of non-zero trend inflation. …

aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …

Empirical evidence suggests that considerable differentials in inflation rates exist across households. This paper … investigates how central banks should react to household inflation heterogeneity in a tractable New Keynesian model. We include two … households that differ in their consumer price inflation rates after adverse shocks. The central bank reacts to either an average …

. Key to our estimation strategy is the use of survey - based expectations for inflation and output. We identify … period. Output shocks shift to the low volatility regime around 1985 whereas inflation shocks do so only around 1990 …, suggesting active monetary policy may have played role in anchoring inflation expectations. Shocks and policy regimes jointly …

. Key to our estimation strategy is the use of survey-based expectations for inflation and output. Output and inflation …

In order to explain the joint fluctuations of output, inflation and the labor market, this paper first develops a … helps to explain the sluggishness of inflation and the persistence of output after a monetary policy shock. The ability of … the model to account for the joint dynamics of output and inflation rely on its ability to explain the dynamics in the …

The speed of inflation adjustment to aggregate technology shocks is substantially larger than to monetary policy shocks …

distribution of macroeconomic shocks. These model features induce variations in the cyclical properties of inflation and the … riskiness of bonds. The estimation identifies inflation as procyclical from the late 1990s, when the economy shifted toward … aggressive monetary policy and experienced procyclical macroeconomics shocks. Since bonds hedge stock market risks when inflation …

This paper extends a standard New Keynesian model to describe the effects of anticipated shocks to inflation and …

and real wage rigidities. In our analysis, we focus on the differentials in inflation and unemployment between countries … inflation and unemployment differentials. Second, we find that asymmetries in labor market structures tend to increase the … volatility of both inflation and unemployment differentials. Finally, we show that it is important to take into account the …