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

suggested in the previous literature. The welfare gains are more clearly seen in the reduced volatility of inflation than …

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 …

inflation arising from higher unemployment in a standard Phillips curve framework is significantly cushioned. This might help to … understand the robustness of inflation especially in the most recent past. In general, the cyclical dynamics of inflation appear …

-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 …

the central bank is to stabilize inflation. On the other hand, if the shift arises from an increase in the elasticity of … employment matches with respect to vacancies, then the policy maker faces a trade off between stabilizing inflation and … Taylor rule that targets inflation and output growth, the optimal monetary policy is more aggressive in pursuit of its …