This paper examines the implications of ex ante skill heterogeneity for long run inflation. We develop a dynamic … may be associated with a greater preference for inflation. Empirically, we also find that the inflation and heterogeneity …

unemployment for the five major European economies. The dynamic adjustment and the level relations are found to be different across …, deviations from reference values are found to influence unemployment for all countries, including the UK. Only for Germany and … Spain, instead, we find evidence that deviations from reference values influence inflation dynamics. …

our fiscal model to include unemployment in a way proposed by Galí, López-Salido, and Vallés (2007). Crucial fiscal …

understand the relationship between inflation and economic growth in order to make sound policies. If inflation is detrimental to … economic growth, then policy makers should aim for low rates of inflation. This leads to a question; how low should the … inflation rate be? Previous research in the non-linearities of the inflation–growth relationship has found that a positive …

manufacturing exports from China to the US impacts output and employment in the US. The US shifts its production away from light …