1980s. Based on the timing of observed fluctuations in interest rates, inflation, and productivity, it appears that the …

to match past inflation. However, the present paper proposes a much larger effect by using the job finding rate as the …

inflation and the stabilization of the welfare relevant output gap after a productivity shock hits the economy. When the … standard model is enhanced by real wage rigidities or labor turnover costs, an endogenous short-run inflation-output tradeoff … rigidities. Second, labor turnover costs are the dominant source for the inflation-output tradeoff when both rigidities are …

contribution of fluctuations in inflation to this particular link. In the data, a temporary rise in inflation causes real commodity … prices to rise, as does a rise in trend inflation. We find that a simple dynamic equilibrium model of commodity supply and … demand gives a realistic response of real commodity prices to inflation. Based on historical simulations, shocks to inflation …

degree of wage rigidity makes monetary policy more effective, i.e. a monetary policy shock transmits faster onto inflation … fluctuations. Our results point primarily towards disturbances in the bargaining process as a significant contributor to inflation …

This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone … output volatility, they do not seem to have much of an effect on inflation volatility. Our estimations indicate that the …

-price model with firm-level productivity growth fits this data and predicts that the optimal long-run inflation rate is positive … long-run inflation near zero. Despite positive long-run inflation, the Taylor principle ensures determinacy in the model … with firm-level productivity growth, and optimal inflation stabilization policies are standard. In a two-sector extension …

implications for monetary policy as the central bank has to decide which inflation rate to target. Our results demonstrate that …

–have crucial implications for the design of monetary policy and for the welfare costs of output and inflation variability. Recent … implications for the welfare costs of steady-state inflation and inflation volatility, and we show that these considerations have … dramatic consequences in assessing the relative price distortions associated with the Great Inflation of 1965-1979. …