The expected anisotropy in solid inflation

Credibility and Targeting Expected Inflation

This paper evaluates inflation targeting in the context of recent theoretical developments concerning the issue of creditability. The first part of the paper argues that the problems of operational and political credibility inherent in a reputation based inflation targeting policy would be avoided by a rule based inflation expectation targeting policy. The second part of the paper demonstrates ...

Slow-roll Inflation and Cmb Anisotropy Data

We emphasize that the estimation of cosmological parameters from CMB anisotropy data, such as the recent high resolution maps from BOOMERanG and MAXIMA-1, requires assumptions on the primordial spectra. The latter are predicted from inflation. The physically best motivated scenario is slow-roll inflation. However, very often the unphysical power-law inflation scenario is (implicitly) assumed in...

The Welfare Costs of Expected and Unexpected Inflation

The monetary search model by Lagos and Wright (2005) is extended with imperfect information about nominal shocks à la Lucas (1972 and 1973). This framework is useful to estimate the welfare costs of expected and erratic inflation because it provides an avenue to identify the transactions affected by monetary shocks and how tolerant individuals are to the fluctuations of output in these transact...

The Term Structure of Real Rates and Expected Inflation∗

Changes in nominal interest rates must be due to either movements in real interest rates, expected inflation, or the inflation risk premium. We develop a term structure model with regime switches, time-varying prices of risk, and inflation to identify these components of the nominal yield curve. We find that the unconditional real rate curve in the U.S. is fairly flat around 1.3%. In one real r...

The Relation Between Inflation and Inflation Uncertainty In Iran