inflation are co-breaking. We argue that the step-like development of inflation is in line with shocks and monetary policy that …% inflation was accomplished by introducing an inflation targeting regime. …

After the introduction of a stabilization program Israeli inflation decreased from 400% in 1985 to 2% in 2013. This … process is defined by three clear steps of high, medium and low inflation. The break dates are in line with major economic …

This paper presents a new mechanism through which monetary policy rules affect inflation persistence. When assuming … the traditional demand channel of monetary transmission have a long-lasting effect on inflation dynamics. The Calvo model … around positive trend inflation. With realistic calibration of trend inflation and the monetary policy rule, the model can …

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 … numerical evaluation shows that the increasing hazard function leads to hump-shaped impulse responses of inflation to monetary …

inflation and real rigidity. Analytically, I find that important dynamics in the NKPC are canceled out due to the restrictive … dynamic structure introduced by the non-constant hazards is also quantitatively important to the inflation dynamics …. Incorporation of real rigidity and trend inflation strengthen this effect even further. With reasonable parameter values, the model …

, determinacy depends only on the parameters in the interest rate rule and a pure forward or backward-looking inflation target is … inconsistent with determinacy. Monetary policy that embodies the Taylor principle with respect to contemporaneous inflation …

We quantify spillovers of inflation expectations between the United States (US) and Euro Area (EA) based on break …-even inflation (BEI) rates. In contrast to previous studies, we model US and EA BEI rates jointly in a structural vector … autoregressive (SVAR) model. The SVAR approach allows to identify US and EA specific inflation expectations shocks. By modeling the …

Well-anchored inflation expectations are a key factor for achieving economic stability. This paper provides new … empirical results on the anchoring of long-term inflation expectations in the euro area. In line with earlier evidence, we find … that euro area inflation expectations have been anchored until fall 2011. Since then, however, they respond significantly …

Anchored inflation expectations are of key importance for monetary policy. If long-terminflation expectations arewell … breaks to investigate the de- and re-anchoring of US inflation expectations. We confirm earlier evidence on the de …