not describe the inflation process sufficiently and it is not a suitable model for inflation prediction or for the choice …New concepts have been presented in modelling of inflation dynamics recently, among others the new Keynesian Phillips … curve (NKPC). There are several traditional ways of NKPC model validity testing, but none of them seems to be practically …

model which nests existing closed economy and open economy models as special cases. The model is then estimated for 9 euro … economy specification of the model than in the closed economy specification indicating that when firms face more variable … input costs they tend to adjust their prices more frequently. However, when the model is estimated in its general …

. Incorporation of real rigidity and trend inflation strengthen this effect even further. With reasonable parameter values, the model … inflation and real rigidity. Analytically, I find that important dynamics in the NKPC are canceled out due to the restrictive … model generates the same aggregate dynamics as the generalized Taylor model with heterogeneous price durations. The richer …

dynamics. I derive the NKPC under an arbitrary hazard function and parameterize it with the Weibull duration model. The … resulting Phillips curve involves lagged inflation and lagged expectations. It nests the Calvo NKPC as a limiting case in the … inflation always has negative coefficients, thereby making it impossible to interpret inflation persistence as intrinsic. The …

-varying inflation persistence as an important issue for monetary policy. We determine not only the location and significance of breaks … in persistence, but also the number of breaks. Only one significant break in U.S. inflation persistence (measured by the … integration ; break in persistence ; unknown break point ; inflation dynamics …

We model provincial inflation in China during the reform period. In particular, we are interested in the ability of the … hybrid New Keynesian Phillips Curve (NKPC) to capture the inflation process at the provincial level. The study highlights … differences in inflation formation and shows that the NKPC provides a reasonable description of the inflation process only for the …

Inflation persistence has been put forward as one of the potential reasons of divergence among euro area members. It … NMS went through, are applied. We emphasize that a time-varying mean models suggest similar or lower inflation persistence … due to frequent breaks in inflation time series in the NMS. Structural persistence measures show that backward …

looking pricing account for the observed persistence in aggregate inflation. Second, price-setting responds to movements in … marginal costs, which should therefore be the driving force to observed inflation dynamics. This is not always the case in … conditions under which imposing homogeneity results in overestimating a backward-looking component in (aggregate) inflation, and …

We re-examine the evidence on the new Phillips curve model of Gali and Gertler (Journal of Monetary Economics 1999 … earlier studies, we find that US postwar data are consistent both with the view that inflation dynamics are forward … relevant determinant of inflation. We show that this is an important factor contributing to the weak identification of the …

Regression model for the period 1995Q1 to 2018Q2. The empirical evidence reveals the existence of two inflation regimes during … the period under review. Food inflation, energy inflation, firms’ marginal cost, and imported inflation account for most … exchange rate solely explains price changes in the composite consumers’ basket when inflation switches to high regime …