stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers‘ stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …

economic performance under inflation targets, and arguments that the flexible exchange rate has undermined real economic …

independence and inflation. Making use of data on the evolution of central bank independence over time and controlling for possible … country’s inflation performance. Examining a cross-section of up to 69 countries, we are able to show that granting a central … bank more autonomy does not necessarily lead to better inflation performance. To lower inflation by increasing independence …

It is an open question whether and how indexed wage contracts reduce welfare or raise average inflation. This paper … analyzes the impact of indexed wage contracts on inflation and social welfare in a Barro–Gordon model with discretionary … monetary policy by endogenizing social costs of indexation. Main results are: Wage indexation reduces the inflation bias but …

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. …

China has been provoked into speeding renmnibi internationalization. But despite rapid growth in offshore financial … repression in domestic interest rates—to avoid an avalanche of foreign capital inflows that would threaten inflation and asset … could attract even more hot money inflows, the People’s Bank of China should focus on tightly stabilizing the yuan/ dollar …

import prices only to a small extent, it may have a substantial impact on inflation, as it exerts a sizeable impact on the …

provides an important role model for China, this paper studies the role of the yen/dollar exchange rate for Japanese monetary …

compares price inflation before the crisis with the necessary and actual price cuts that have taken place since the outbreak of … the crisis, predicting a decade of stagnation for the south and inflation for the north. Keynesian demand policy is …

economy. While about half of all studies for the United States find a significant effect of unemployment and inflation on … choice of the sample period is of crucial importance. While in the very long run we find unemployment, inflation and the … indication that the most often employed linear estimation approach is inadequate. Further research on these issues is necessary. …