Devereux, Michael - In: Economic Inquiry 27 (1989) 1, pp. 105-16
Empirically, inflation and the variance of inflation are positively associated. This paper develops a model that … equilibrium." The model can also account for an empirical association between inflation and measures of real output instability …. There is, however, no direct causal link whatever from the average rate of inflation to either the variance of inflation or …