Intro -- Contents -- Preface -- Introduction -- 1 - Empirical Evidence on Money, Prices, and Output -- 2 - Money-in-the-Utility Function -- 3 - Money and Transactions -- 4 - Money and Public Finance -- 5 - Money, Output, and Inflation in the Short Run -- 6 - Money and the Open Economy -- 7 - The...

We derive a linear-quadratic model that is consistent with sticky prices and search and matching frictions in the labor market. We show that the second-order approximation to the welfare of the representative agent depends on inflation and "gaps" that involve current and lagged unemployment. Our...

Replicating the flexible price allocation in models with nominal rigidities and labor market frictions that lead to an inefficient matching of unemployed workers with job vacancies, even if feasible, is generally not desirable. We characterize the tax instruments that implement the first best...

Over the last decade, many central banks have adopted policies known as <italic>inflation targeting.</italic> If intermediate-level macroeconomics students are to be prepared to think about current policy issues, it is important to provide them with an introduction to the macroeconomic implications of inflation...

In recent years, a number of countries have changed their central banking institutions. Often these reforms involve granting long terms of office to central bankers. This threatens to limit the extent to which the central bank can be held accountability. Dismissal rules can help ensure...