nominal and real wage rigidity) and social preferences regarding inflation, employment, and real wages. We also calibrate our …

employment in peripheral Europe could be restored by raising the Euro-area annual rate of inflation to about 4 percent for the …

The fiscal gains from, and hence the political incentives for, an increase in the inflation rate of ten percentage … inflation increase would have been even larger, however, and would thus have reduced net welfare. Possible institutional reforms …, aimed at making the political costs of inflation more equal to the social costs, are presented and discussed. …

monetary arrangements, a flexible exchange rate and an inflation target, are contrasted both with a unilateral adoption by … in favour of either form of monetary union. Seigniorage considerations argue against unilateral adoption of the U …