-form (CF) estimates require by construction that expectations of inflation be model-consistent at all points in time, while the … inflation is insufficient to explain inflation persistence. …

.S. inflation. We examine the overall performance of Phillips curves relative to some well-known benchmarks, the efficiency with … which the Federal Reserve's Greenbook forecasts of inflation use real activity information, and shifts in the key … determinants of the reduced-form triangle model" of inflation. We develop a structural model-based interpretation of observed …

the standard difference equation (DE) form, current inflation is a function of past inflation, expected future inflation …, and real marginal costs. The alternative closed form (CF) specification explicitly solves the DE form to express inflation … as a function of past inflation and a present-discounted value of current and expected future marginal costs. The CF …

this endogenous timing of price adjustment alters the tradeoff and the cost of inflation variation faced by the monetary … authority in comparison to the standard time-dependent pricing (TDP) assumption. In particular, it is desirable to let inflation … tradeoff gives rise to much higher start-up inflation under SDP. …