Inflation Persistence, Monetary Policy, and the Great Moderation

2009 ◽  
Vol 41 (4) ◽  
pp. 767-786 ◽  
Author(s):  
CHARLES T. CARLSTROM ◽  
TIMOTHY S. FUERST ◽  
MATTHIAS PAUSTIAN
Keyword(s):  
Monetary Policy ◽  
Great Moderation ◽  
Inflation Persistence

Inflation Inertia and Inflation Persistence in Romania Using a DSGE Approach

2019 ◽  
pp. 162-175
Keyword(s):  
Monetary Policy ◽  
Economic Development ◽  
Significant Influence ◽  
Inflation Persistence ◽  
Inflation Expectation ◽  
Policy Dynamics ◽  
Inflation Inertia

The main purpose of this chapter is to investigate monetary policy dynamics, as well as the inflation inertia and inflation persistence in Romania using a DSGE approach. The empirical findings revealed that the price evolution reflects the difficulties of eliminating the inflation inertia. Moreover, in Romania, the historic inflation evolution has a significant influence in terms of inflation expectation patterns. Inflation is a negative phenomenon with dramatic consequences for Romania's economic development on long term.

On the sources of the Great Moderation: Role of monetary policy and intermediate inputs

2018 ◽  
Vol 74 ◽  
pp. 1-9 ◽  
Author(s):  
Sourav Batabyal ◽  
Faridul Islam ◽  
Maher Khaznaji
Keyword(s):  
Monetary Policy ◽  
Great Moderation ◽  
Intermediate Inputs

scholarly journals The Missing Link: Monetary Policy and The Labor Share

2020 ◽  
Author(s):  
Cristiano Cantore ◽  
Filippo Ferroni ◽  
Miguel León-Ledesma
Keyword(s):  
Monetary Policy ◽  
The United States ◽  
New Keynesian ◽  
Great Moderation ◽  
Real Wages ◽  
Present Evidence ◽  
Labor Share ◽  
Nk Model ◽  
The United Kingdom ◽  
Monetary Policy Shock

Abstract The textbook New Keynesian (NK) model implies that the labor share is procyclical conditional on a monetary policy shock. We present evidence that a monetary policy tightening robustly increased the labor share and decreased real wages during the Great Moderation period in the United States, the Euro Area, the United Kingdom, Australia, and Canada. We show that this is inconsistent not only with the basic NK model, but also with medium-scale NK models commonly used for monetary policy analysis and where it is possible to break the direct link between the labor share and the inverse markup. Our results imply that either NK models are unable to separate the dynamics of the labor share from the markup or markups do not respond in the way NK models predict.

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