-- Customer markets and financial frictions: implications for inflation dynamics / Simon Gilchrist, Egon Zakrajšek -- Commentary … international spillovers on inflation dynamics and independent monetary policy: the Swiss experience / Thomas J. Jordan -- Inflation … dynamics: lessons from past debates for current policy / Athanasios Orphanides -- Inflation dynamics in Latin America: a …

This paper develops a general equilibrium monetary model with performance incentives to study the inflation …-unemployment relationship. A long-run downward-sloping Phillips curve can exist with perfectly anticipated inflation because workers’ incentive … to exert effort depend on financial market returns. Consequently, higher inflation rates can reduce wages and stimulate …

discretionary policy increase even further when inflation is partly determined by lagged inflation in the Phillips curve. These …

raising their interest rate instrument more than one-for-one in response to higher inflation. A monetary policy process is a …