This paper analyzes the dramatic rise in U.S. inflation since 2020, which we decompose into a rise in core inflation as … measured by the weighted median inflation rate and deviations of headline inflation from core. We explain the rise in core with …-through into core from past shocks to headline inflation. The headline shocks themselves are explained largely by increases in …

’ inflation expectations to their own lagged forecasts as well as proxies for the rational expectation forecasts. The model builds … in inflation expectations extensively documented in the literature. We estimate the model using data from two important … Survey of Consumer Expectations. We find that inflation expectations appear to correlate more strongly to measures of …

.S. contribute to the 2021-2023 inflation surge through the lens of several different empirical methodologies-event studies, vector … through a disinflationary channel in the Phillips curve while monetary and fiscal stimuli put positive pressure on inflation …

This paper analyzes the dramatic rise in U.S. inflation since 2020, which we decompose into a rise in core inflation as … measured by the weighted median inflation rate and deviations of headline inflation from core. We explain the rise in core with …-through into core from past shocks to headline inflation. The headline shocks themselves are explained largely by increases in …

inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively …

This paper compares the performance of simple inflation targeting (IT) and price-level path targeting (PLPT) rules to … preferred to IT for delivering macroeconomic stability, as it delivers a reduction in inflation and nominal interest rate … relative merits of PLPT versus IT in Canada. -- Economic models ; Inflation: costs and benefits ; Inflation and prices …

This article provides a macro-foundation for why the specific value of 2% is a valid inflation target. The approach … is tested for the U.S. (for aggregates M1, M1RS, and M1S) over the period 1959-2007. Setting the inflation target rate … equal to the growth rate of velocity leads to an inflation rate near 2% and is akin to pursuing the Friedman k-% rule. This …

overly sensitive to monetary policy shocks, and that this is consistent with a model where long-term inflation expectations … are not anchored because agents must infer the central bankś inflation target from noisy interest rate movements. Using … inflation target - imperfect information about the target plays only a small role in un-anchoring expectations in their model …

implications for monetary policy as the central bank has to decide which inflation rate to target. Our results demonstrate that …