Di Bartolomeo, Giovanni; Tirelli, Patrizio; Acocella, Nicola - In: Journal of Policy Modeling 36 (2014) 6, pp. 1022-1035
Recent developments in macroeconomics resurrect the view that welfare costs of inflation arise because the latter acts as a tax on money balances. Empirical contributions show that wage re-negotiations take place while expiring contracts are still in place. Bringing these seemingly unrelated...