the income velocity of money that can break the otherwise stable relation between money, inflation, and output growth …The Paper presents a model in which the exogenous money supply causes changes in the inflation rate and the output … growth rate. While inflation and growth rate changes occur simultaneously, the inflation acts as a tax on the return to human …

examines whether there is support for it in the microfoundations of linked open economies. It uses the cash-in-advance general … comes from the cash-in-advance constraint, which causes labour supply to respond to expected inflation (and so money growth … gauged by the variance of output and prices. Hence this microfoundations model, though in a way supporting the optimal …

consumption velocity very closely during the high-inflation years. …We explore the properties of velocity in a model where agents are required by law to use money to pay taxes, but not …

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 …

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 …

This paper integrate microfoundations of wage staggering into a simple dynamic general equilibrium model with rational … 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 …

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

The paper shows that US GDP velocity of M1 money has exhibited long cycles around a 1.25% per year upward trend, during … the 1919-2004 period. It explains the velocity cycles through shocks constructed from a DSGE model and annual time series … data (Ingram et al., 1994). Model velocity is stable along the balanced growth path, which features endogenous growth and …