[...]This article explores the inflation puzzle andinvestigates whether compensation has acted as either atemporary … restraint on inflation or as the underlying sourceof a new inflation regime.2 After reviewing the recent behavior of inflation …, we specify and estimate a traditionalprice-inflation Phillips curve model over the 1965-96period. Our results show that …

[...]This article investigates the relationshipbetween asset size and risk at bank holding companiesfrom 1987 to 1993 ….1 We find that for most of thisperiod, the level of risk at large bank holding companiesdid not differ significantly from … counterbalanced this diversification advantage,leaving large bank holding companies with no less riskthan small companies throughout …

disturbance that affects the economy. Despite this result, simple targeting rules that involve onlytargets for the growth of … output and for both domestic GDP and CPI inflation rates can replicate thecooperative allocation.[...] …

This paper investigates the relationship between inflation uncertainty and the investmentdecisions of small, micro ……finance-funded …firms in the Dominican Republic. An extensive literature documents the array of opposing factors linking inflation … lower investments in …fixed assets and reducedbusiness growth. This …finding is robust to specifi…cations controlling for …

relative-price changes on inflation fluctuations. Therelative price of the flexible-price good represents a shift parameter of … the NewKeynesian Phillips curve. The optimal monetary policy is to target sticky-price inflation,rather than a broad … inflation measure... …

We describe a behavior of a central bank when its measures of current inflation and outputare subject to measurement … rateresponds to the central bank’s estimates of both current inflation and output gap, as advocatedby Taylor (1993)... … errors, in a framework of optimizing models with nominal pricestickiness. In our model, a central bank sets the interest rate …

depends on the actual inflation outcome, which maydiffer from expectations at the time the TIPS investment wasmade because …