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Sticky price models featuring heterogeneous firms and systematic firm-level productivity trends deliver radically different predictions for the optimal inflation rate than their popular homogenous-firm counterparts: (i) the optimal steady-state inflation rate generically differs from zero and (ii) inflation optimally responds to productivity ...
Adam, Klaus, Weber, Henning
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Core Inflation in Iran: A maximum overlap discrete wavelet transformation (MOWT) and Multi Resolution Analysis (MRA) [PDF]
Identification of persistence component of inflation and prediction about future inflation structure is a crucial ingredient of an inflation targeting strategies or other related monetary policies.
Mohammad Hassan Saboori Deilami +1 more
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Monetary Policy and Economic Stability: a DSGE Approach to Trend Inflation in Morocco [PDF]
This article explores the impact of trend inflation on monetary policy under a higher inflation target. Adding trend inflation to DSGE models helps us understand the inflation gap better; the gap is less persistent when it is measured as a deviation from
Hicham El Ouazzani +2 more
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Investigating the impact of e-commerce development on inflation in the euro area
This article explores the impact of e-commerce development on inflation in the euro area. Low inflation in the euro area has been a concern for policymakers since the global economic crisis. Economic growth and inflation have recovered in many countries,
Kulakov Mikhail, Vinogradov Artem
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Is it Time to Reassess the Focal Role of Core PCE Inflation in Assessing the Trend in PCE Inflation?
“Core” PCE inflation—that is, inflation in PCE-ex-food-and-energy—is widely used as an estimate of trend inflation. But it is long overdue for replacement. The original rationale of core inflation was to remove volatile items with transitory shocks. But
Randal Verbrugge
doaj
Relationship Between Inflation and Economic Growth in EU Countries
Low inflation and high economic growth are two of the main macroeconomic targets that all countries hope to reach. The reciprocal relationship between inflation and growth is currently an important debate in the literature.
Ayfer Özyılmaz
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Does trend inflation make a difference? [PDF]
Although the average inflation rate of developed countries in the postwar period has been greater than zero, much of the extensive literature on monetary policy has employed models that assume zero steady-state inflation. In comparing four estimated medium-scale NK DSGE models with real and nominal frictions, we seek to shed light on the quantitative ...
Michele Loberto, Chiara Perricone
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Analysis of Indonesia’s Inflation Using ARIMA and Artificial Neural Network
This study aims to compare forecast performance of Neural Network (NN) to ARIMA in the case of Indonesia’s inflation and to find if there is any interesting trend in Indonesia’s inflation.
Fauzi Insan Estiko, Wahyuddin Wahyuddin
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Inflation Trends in Asia: Implications for Central Banks [PDF]
Trend inflation estimates for 12 of the largest Asian economies over 1995-2018 offer important insights on inflation dynamics and inflation expectations. The disinflationary shocks that hit the region since 2014 were partly transitory, but their effects have been different depending on the behaviour of trend inflation in each country.
Garcia, Juan Angel, Poon, Aubrey
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Optimal Inflation and Inflation Targeting: International Experience
The relationship between optimal, threshold and target inflation regarding the inflation targeting policy has been analyzed on the example of some countries.
E. V. Sinelnikova-Muryleva +1 more
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