Keynesian model we show that, if households have hyperbolic discounting, small positive rates of inflation can be optimal. In … our baseline calibration, the optimal rate of inflation is 2.1% and remains positive across a wide range of calibrations. …

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

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 …

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 …

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

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 …

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). …

We investigate inflation predictability in the United States across the monetary regimes of the XXth century. The … forecasts based on money growth and output growth were significantly more accurate than the forecasts based on past inflation … only during the regimes associated with neither a clear nominal anchor nor a credible commitment to fight inflation. These …