natural rate of unemployment. In addition, because of differential inflation across countries, real exchange rates become …

has been a worsening in the trade-off between unemployment and inflation. The poor unemployment/inflation trade-off is due … (which does little to restrain inflation). …

precommit. This implies that a variation of the policy maker's degree of inflation aversion does not have a systematic effect on … maker's inflation aversion may have a systematic effect on equilibrium employment even if agents have rational expectations …

features, such as the degree of centralization of wage bargaining, labour unions' inflation aversion and the degree of … monetary policy usually affects both inflation and unemployment, even when all structural parameters of the economy and of …

We extend the `rational-partisan' model of inflation to allow for the effects of unemployment persistence on the … dynamics of inflation. We combine this model with the `exchange-rate-regime' model of inflation and examine the experience of … the United Kingdom. Outside the fixed exchange rate regime of Bretton Woods, persistently high inflation can be attributed …

inflation. The labour market is characterized by the degree of centralization of bargaining and by the degree of trade unions …’ inflation aversion. The latter leads each union to moderate its wage demands in order to induce the Central Bank (CB) to inflate …) triggers two opposite effects on real wages, unemployment and inflation. The decrease in the number of unions reduces the …

shifts in the parameters of wage equations when the process generating price inflation changes. The two major shifts that we …