The Calvo contract Phillips Curve is widely indexed for general inflation, using either core inflation or other … that optimal indexation would by contrast use the rational expectation of inflation. If this scheme is implemented, the …

by nearly double-digit inflation and undergoing massive changes in market structure during the process of transition and …-linear. Product-specific inflation is typically highly persistent. We find that market structure is an important determinant of … depends negatively on the price dispersion and positively on the individual inflation, seems consistent with predictions of …

This paper estimates the NAIRU (standing for the Non-Accelerating Inflation Rate of Unemployment) as a parameter that … varies over time. The NAIRU is the unemployment rate that is consistent with a constant rate of inflation. Its value is … determined in an econometric model in which the inflation rate depends on its own past values (‘inertia’), demand shocks proxied …

model, covering a panel of EU countries, and derives the implied long-run inflation-unemployment tradeoff. Our results …

measures of marginal cost as the relevant determinant of inflation, as the theory suggests, instead of an ad-hoc output gap …We develop and estimate a structural model of inflation that allows for a fraction of firms that use a backward looking …. Real marginal costs are a significant and quantitatively important determinant of inflation. Backward looking price setting …

inflation and a permanent reduction in the level of unemployment. In short, we derive a microfounded long-run downward …

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

examining the relationship between inflation and unemployment, which sheds light on these developments. The theoretical section … similar inflation behaviour, in that inflation depends more closely on the capacity utilization rate than on the unemployment … high unemployment does not put downward pressure on the inflation rate. During the 1970s and 1980s in Germany, there …