UNLABELLED The objective of this paper is to verify the hypotheses presented in the literature on the causal relationship between inflation and its uncertainty, for the newest EU countries. To ensure the robustness of the results, in the study four models for inflation uncertainty are estimated in parallel: ARCH (1), GARCH (1,1), EGARCH (1,1,1) and PARCH (1,1,1). The Granger method is used to t...

unemployment-inflation trade-off is known as philips curve. this relationship was first defined for england economy by professor philips since 1958. much development has been submitted by different economic schools about this innovation. in this paper, apart from dealing with the new-keynesians philips curve, the curve mentioned is estimated for iranian economy. in addition, we are going to com...

Inflation targeting needs to be supplemented by an economic growth target so that central banks will not adopt monetary policy which results in stagnation. There is no guarantee that the economy will move towards full employment by itself when the inflation rate is kept between two to three per cent. Monetary policy does not have a comparative advantage in achieving price stability. Svensson's ...

Boschen and Weise (Journal of Money, Credit and Banking, 2003) model the probability of a large upturn in in‡ation. We extend their work to show that openness to trade exerts a negative e¤ect on the probability of such an event. Keywords: In‡ation starts, trade openness. JEL classi…cation: E31, F41.

This paper extends the standard New Keynesian model by incorporating labor adjustment costs and overtime work. I show that labor frictions help reconcile the frequent price changes found in the microdata with the degree of sluggishness in inflation adjustment to output changes at the macro level. The introduction of labor frictions affects the dynamic behavior of economic variables (particularl...

high inflation has been as one of the characteristics of developing countries including iran and its economic and social impacts are extensive. compiling policies for economic development requires that inflation impacts on different social classes should be studied carefully. microeconomic analyses show that because of higher increase in price of goods that have higher share in consumption bund...

The paper analyzes the effects of financial liberalization on inflation. We develop a monetary and endogenous growth, dynamic general equilibrium model of a small open semi-industrialized economy, with financial intermediaries subjected to obligatory ”high” reserve ratio, serving as the source of financial repression. When calibrated to four Southern European semi-industrialized countries, name...

We use noncausal autoregressions to examine the persistence properties of quarterly U.S. consumer price inflation from 1970:1—2012:2. These nonlinear models capture the autocorrelation structure of the inflation series as accurately as their conventional causal counterparts, but they allow for persistence to depend on the size and sign of shocks to inflation as well as the inflation rate. Infla...

The literature on the benefits and costs of financial globalization for developing countries has exploded in recent years. There seems to be a consensus that financial globalization has had a "discipline effect" on monetary policy, because it has reduced the returns from using monetary policy to stabilize the output. As a result, monetary policy over recent years has placed more emphasis o...