We revisit Western Europe’s record with labor-productivity convergence, and tentatively extrapolate its implications … reallocation of labor from agriculture to manufacturing and services, which have higher capital intensity and use resources more …

aggregates. The data show that periods of increased inflation uncertainty are associated with substantial reductions in total …

This paper presents a political economy model of inflation as a result of social conflict. Agents are heterogeneous in … terms of income. Agents’ income levels determine their ability to hedge against the effects of inflation. The interaction of … model makes a number of predictions concerning which environments are conducive to the emergence of inflation. Inflation …

dynamics of inflation implied by macroeconomic data, the model needs to assume an average duration of price contracts which is … perfectly competitive labor market can help resolve the pricing conflict. I do so by assuming search frictions in the labor … market. In this framework, labor becomes firm-specific and marginal cost curves become upward-sloping. This mechanism reduces …

inflation is low. Despite the substantial numbers of individuals whose nominal wages fall from one year to the next, we find … that if long-run inflation is one percent higher, the number of individuals with negative real pay growth increases by …

inflation to rise in the short term. Our results also suggest that the effects on aggregate supply have grown stronger in recent …

A reduction in inflation can fuel run-ups in housing prices if people suffer from money illusion. For example … account that inflation lowers future real mortgage costs. We decompose the price-rent ratio in a rational component — meant to … capture the proxy effect and risk premia — and an implied mispricing. We find that inflation and nominal interest rates …