Many observers suggest that the "globalization" of the U.S. economy has changed the behavior of inflation. This essay … examines this idea, focusing on several questions: (1) Has globalization reduced the long-run level of inflation? (2) Has it … affected the structure of inflation dynamics, as captured by the Phillips curve? (3) Has it contributed substantial negative …

This paper studies the welfare effects of the relative price variability arising from inflation. When agents interact … informational role: a potential customer uses current prices as signals of future prices. Inflation reduces the informativeness of … at moderate inflation rates. …

unemployment-inflation tradeoff since 1995. …

the fall in trend inflation. I develop a method for estimating the sacrifice ratio in individual disinflation episodes …, and apply it to 65 episodes in moderate-inflation OECD countries. In this sample. the sacrifice ratio is decreasing in the … inflation are unclear. …

This paper discusses the NAIRU -- the non-accelerating inflation rate of unemployment. It first considers the role of … influences both inflation and unemployment. The exact value of the NAIRU is hard to measure, however, in part because it changes …

monetary policy used to reduce inflation. The evidence comes from a cross-country comparison: countries with larger decreases … in inflation and longer disinflationary periods have larger rises in the NAIRU. Imperfections in the labor market have …

This paper presents a model of a high-inflation economy. The model includes the government budget constraint and money … demand equation of Cagan's 1956 model; an accelerationist Phillips curve that captures inflation inertia; and an aggregate …-spending equation that accounts for the effects of the inflation tax. The paper derives the dynamic effects of fiscal policy, incomes …

Sticky-price models with rational expectations fail to capture the inertia in U.S. inflation. Models with backward …-looking expectations capture current inflation behavior, but are unlikely to fit other monetary regimes. This paper seeks to overcome these … problems with a near-rational model of expectations. In the model, agents make univariate forecasts of inflation: they use …

This paper examines inflation dynamics in the United States since 1960, with a particular focus on the Great Recession …. A puzzle emerges when Phillips curves estimated over 1960-2007 are used to predict inflation over 2008-2010: inflation … by theories of costly price adjustment: we measure core inflation with the median CPI inflation rate, and we allow the …

This paper examines the recent behavior of core inflation in the United States. We specify a simple Phillips curve … based on the assumptions that inflation expectations are fully anchored at the Federal Reserve’s target, and that labor …-market slack is captured by the level of short-term unemployment. This equation explains inflation behavior since 2000, including …