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Understanding inflation dynamics : Where do we stand ?

  • Maarten Dossche

    ()

    (National Bank of Belgium, Research Department
    Ghent University)

I summarize recent progress made in the literature on inflation dynamics. This has been a very productive area of research due to the development of the so-called New Keynesian model and the availability of new macroeconomic and microeconomic evidence. Nevertheless, a number of problems still subsist. In particular the importance of temporary price markdowns to inflation dynamics and the characteristics of the information set price-setters use for their price adjustment decision currently constitute unresolved issues

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Paper provided by National Bank of Belgium in its series Working Paper Research with number 165.

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Length: 38 pages
Date of creation: Jun 2009
Date of revision:
Handle: RePEc:nbb:reswpp:200906-11
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