Inflation Dynamics When Inflation Is Near Zero

• Published in: Journal of money, credit and banking Vol. 44; no. s1; pp. 83 - 122
• Main Authors: FUHRER, JEFFREY C., OLIVEI, GIOVANNI P., TOOTELL, GEOFFREY M. B.
• Format: Journal Article
• Language: English
• Published: Malden, USA Blackwell Publishing Inc 01.02.2012; Wiley Subscription Services; Wiley-Blackwell; Ohio State University Press
• Subjects: 1954-2012; anchored expectations; Bank credit; Coefficients; Comparative economics; Core inflation; Credit; Cross-national analysis; downward nominal wage rigidity; E12; E31; E52; Economic models; Historical analysis; Inflation; Inflation rates; Inflationserwartung; Japan; Lohnrigidität; Marginal costs; Nominal rigidities; Nominal wages; Output gaps; Phillips curve; Prices; Studies; survey expectations; U.S.A; USA; Wage rates; Wage rigidity; Wages; Wages & salaries; Zins; United States > US; Japan
• ISSN: 0022-2879; 1538-4616
• DOI: 10.1111/j.1538-4616.2011.00479.x

We discuss the likely evolution of U.S. inflation in the near and medium terms on the basis of (i) past U.S. experience with very low levels of inflation, (ii) the most recent Japanese experience with negative inflation, and (iii) some preliminary U.S. micro evidence on downward nominal wage rigidit...