unemployment-inflation tradeoff since 1995 …

Sticky-price models with rational expectations fail to capture the inertia in U.S. inflation. Models with backward …-looking expectations capture current inflation behavior, but are unlikely to fit other monetary regimes. This paper seeks to overcome these … problems with a near-rational model of expectations. In the model, agents make univariate forecasts of inflation: they use …

This paper presents a model of a high-inflation economy. The model includes the government budget constraint and money … demand equation of Cagan's 1956 model; an accelerationist Phillips curve that captures inflation inertia; and an aggregate …-spending equation that accounts for the effects of the inflation tax. The paper derives the dynamic effects of fiscal policy, incomes …

This paper studies the welfare effects of the relative price variability arising from inflation. When agents interact … informational role: a potential customer uses current prices as signals of future prices. Inflation reduces the informativeness of … at moderate inflation rates …

This paper presents a model of monetary policy in which a rise in inflation raises uncertainty about future inflation …. When inflation is low, there is a consensus that the monetary authority will try to keep it low. When inflation is high …

This paper asks whether inflation targeting improves economic performance, as measured by the behavior of inflation …, output, and interest rates. We compare seven OECD countries that adopted inflation targeting in the early 1990s to thirteen …-targeters. In some cases the targeters improved by more; for example, average inflation fell by a larger amount. However, these …