EABCN Training School: Inflation Costs and Optimal Inflation

Mannheim, Germany
02 Sep 2026

Euro Area Business Cycle Network Training School

Inflation Costs and Optimal Inflation
by Klaus Adam (University College London, University of Mannheim & CEPR)
2-4 September 2026

In-person in Mannheim, Germany

Submission Deadline: 6 pm GMT (UK Time), Friday 17 April 2026

General Description
 
We are pleased to announce details of the latest EABCN Training School; a three-day course entitled “Inflation Costs and Optimal Inflation”. Professor Klaus Adam (University College London, University of Mannheim & CEPR) will teach the course.

It is primarily aimed at participants in the Euro Area Business Cycle Network but applications will also be considered from doctoral students, post-doctoral researchers and economists working in central banks and government institutions outside of the network, as well as commercial organisations (fees are applicable for non-network non-academic organisations).


Tentative course outline
This course covers recent research findings about optimal monetary policy design and the economic costs associated with different inflation rates. The course focuses on the key role played by supply-side heterogeneity and supply-side turnover for the optimal inflation target and for optimal monetary stabilization policy. It also presents new approaches for estimating the misallocation cost of inflation and covers the crucial role of deviations from rational expectations for optimal stabilization policy.
 
The course is divided into three lecture sessions, each followed by a practice session.

Day 1 - Wednesday, 2 September 2026
Morning Session 1 (9:00-10:30):
Determinants of the Optimal Inflation Target – Overview and New Approaches
Morning Session 2 (10:45-13:15):
Estimating the Optimal Steady-State Inflation Target From Micro Price Data
Afternoon Practice Session (14:15-15:45):
MatLab Session on Estimating the Optimal Inflation Target
 
Day 2 - Thursday, 3 September 2026
Morning Session 1 (9:00-10:30):
A Linear-Quadratic NK Model with Non-Zero & Time-Varying Inflation Target.
Morning Session 2 (10:45-13:15):
Estimating the Distortionary Effects of Suboptimal Inflation from Micro Price Data
Afternoon Practice Session (14:15-15:45):
Dynare Implementation of the NK Model with a Non-Zero & Time-Varying Inflation Target
 
Day 3 - Friday, 4 September 2026
Morning Session 1 (9:00-10:30):
Monetary Stabilization Policy Without Rational Expectations
Morning Session 2 (10:45-13:15):
Policy Implications of Belief-Driven Asset Price Fluctuations & Declining Natural Rates
Afternoon Session (14:15-15:45)
MatLab-based estimation of the misallocation costs of suboptimal inflation

Practice sessions
For practice sessions, participants need to bring their own laptop computer with MatLab (version R2023b Update 6 or later version ) and a recent version of DYNARE installed on it.
 
Prerequisites and required readings
A general familiarity with sticky price models and questions around optimal inflation is assumed. Course participants that need a refresher on this front should consult prior to attending this course:

  • Jordi Galí (2015), ‘Monetary Policy Inflation and the Business Cycle’, Princeton University Press, chapters 3-5; and
  • Adam, K. and H. Weber (2024), The Optimal Inflation Target: Bridging the Gap Between Theory and Practice”, in: The Research Handbook on Monetary Policy, 2025, edited by G. Ascari and R. Trezzi, which is available via this ungated link.

 

Administrative Information
We ask that you send a current version of your CV. PhD students must also specify in which way the school will be useful for their current research (max 300 words).
 
The course will take place in Mannheim, Germany. More information about logistics will be circulated closer to the date. 
 
Participants will be invited to make their own arrangements regarding their travel, accommodation and meals. Further information about hotel options will be available to successful applicants.

Participants from non-academic institutions where the employer is not a member of the EABCN network are charged a course fee of EUR2500.
 

 How to apply:

Candidates who are CEPR affiliated or already have a CEPR profile should apply by submitting their CV online: 

  1. Log in on the CEPR hub online at https://hub.cepr.org/
  2. Go to https://hub.cepr.org/event/5026
  3. Click on "Step 1: Apply"
  4. Complete the requested information and upload the required documentation:
    Applications without the required documents will not be considered.
    a. All applicants must submit a CV. PDF or word document is preferred but the option to provide a link to CV is available.
    b. PhD Students must include a supporting statement (max 300 words) specifying how the school will be useful for their current research.
    i. To do so click ‘Would you like to submit additional files?’.
    ii. Upload PDF or Word Document.
    iii. The Supporting Statement must be in a document separate from the CV file.
  5. Click "Submit Information".

Candidates who are not CEPR affiliated or do not have a CEPR profile should apply by submitting their CV online:

  1. Create an online profile at https://hub.cepr.org/user/register
  2. Log in on the CEPR hub online at https://hub.cepr.org/
  3. Go to https://hub.cepr.org/event/5026
  4. Click on "Step 1: Apply"
  5. Complete the requested information and upload the required documentation:
    Applications without the required documents will not be considered.
    a. All applicants must submit a CV. PDF or word document is preferred but the option to provide a link to CV is available.
    b. PhD Students must include a supporting statement (max 300 words) specifying how the school will be useful for their current research.
    i. To do so click ‘Would you like to submit additional files?’.
    ii. Upload PDF or Word Document.
    iii. The Supporting Statement must be in a document separate from the CV file.
  6. Click "Submit Information".

If you have any difficulty in applying please contact Bao Khanh Le, Senior Events Officer for assistance. 
 


About the Instructor:
 
Klaus Adam is Professor of Economics at University College London (UCL) and at University of Mannheim. He previously held a professorship at University of Oxford & Nuffield College and also worked for the European Central Bank. He is a member of the Academic Advisory Board of the German Ministry of Finance, Research Professor at the Deutsche Bundes­bank, CEPR Research Fellow, and associate editor for the Journal of Monetary Economics. His research focuses on questions of optimal inflation and optimal monetary stabilization policy, as well as on the role of deviations from rational expectations for macroeconomic and financial outcomes and optimal policy design.