Inflation: Dynamics, Expectations. and Targeting

Monday, July 12, 2021

10:00 – 10:15 Welcome and opening remarks

Amir Yaron, Governor, Bank of Israel

Session I Chair: Refet S. Gurkaynak, Bilkent University & CEPR

10:15–11:10 Spending Allocation UnderNominal Uncertainty: A Model of Effective Price Rigidity

Gaetano Gaballo (HEC Paris and CEPR) Luigi Paciello (HEC Paris and CEPR) Discussant: Mirko Wiederholt, SciencesPo

Spending Allocation UnderNominal Uncertainty Wiederholt Discussion Gaballo Paciello

11:15 – 12:10 New Evidence on MonetaryTransmission: Interest Rate Versus Inflation Target Shocks

Elizaveta Lukmanova (UCLouvain) Katrin Rabitsch (Vienna University of Economics and Business) Discussant: Yossi Yakhin, Bank of Israel

New Evidence on MonetaryTransmission Yakhin Discussion Lukmanova Rabitsch

12:15 – 13:15 Estimating the OptimalInflation Target from Trends in Relative Prices, joint work with Klaus Adams

Henning Weber – Deutsche Bundesbank

Estimating the Optimal Inflation Target from Trends in Relative Prices

13:15-14:00 Break

Session II Chair: Michel Strawczynski, Bank of Israel

14:00 – 14:55 Anchoring of Inflation Expectations: Do Inflation Target Formulations Matter?

Grosse-Steffen Christoph (Banque de France) Discussant: Alon Binyamini, Bank of Israel

Anchoring of Inflation Expectations Discussant: Grosse-Steffen Christoph, Alon Binyamini

15:00 - 15:55 On the Robustness of Average Inflation Targeting?

Seppo Honkapohja (Aalto University School of Business) Nigel McClung (Bank of Finland) Discussant: Lilia Maliar, CUNY

Seppo Honkapohja Lilia Maliar

15:55 – 16:25 Break

16:30 – 17:30 Keynote speaker:

John Williams, President and Chief Executive Officer of the Federal Reserve Bank of New York

Tuesday, July 13, 2021

Session III Chair: Wouter J. den Haan, LSE & CEPR

10:30 – 11:25 Control Costs, Rational Inattention, and Retail Price Dynamics

James Costain (Banco de Espa˜na) Anton Nakov (ECB and CEPR) Discussant: Alistair Macaulay, Oxford

Control Costs, Rational Inattention,and Retail Price Dynamics Discussion- Alistair Macaulay

11:30 – 12:25 The Extensive and Intensive Margin of Price Adjustment to Cost Shocks: Evidence from Danish Multiproduct Firms

Luca Dedola (ECB and CEPR) Mark Strøm Kristoffersen, (Fagbevaegelsens Hovedorganistion) Gabriel Züllig (University of Oxford and Danmarks Nationalbank) Presentation Discussant: Almut Balleer, RWTH Aachen

The Extensive and Intensive Margin of PriceAdjustment to Cost Shocks Dedola Presentation Almut Balleer Discussion

12:30 – 13:25 Break

Session IV Chair: Sigal Ribon, Bank of Israel

13:30 – 14:25 Time-varying Price Flexibility and Inflation Dynamics

Ivan Petrella (University of Warwick & CEPR) Emiliano Santoro (University of Copenhagen) Lasse de la Porte Simonsen (Birbeck College) Discussant: Richard Davies, Bristol University and Economics Observatory

Time-varying Price Flexibility and Inflation Dynamics

14:30-15:25 Optimal Policy under Dollar Pricing

Konstantin Egorov (NES) Dmitry Mukhin (University of Wisconsin) Discussant: Vania Stavrakeva, London Business School

Egorov Mukhin Presentation

15:30 – 16:00 Break

16:00-17:15 Policy Panel:

Amir Yaron - Governor, Bank of Israel - Moderator | Stefan Ingves - Governor and Chairman of the Executive Board, Severiges Riksbank | Thomas Jordan - Chairman of the Governing Board, Swiss National Bank | Jiri Rusnok - Governor, Czech National Bank

Stefan Ingvas presentation Thomas Jordan presentation Jiri Rusnok presentation