which adjustment costs apply to the price level but not to the inflation rate. Formal hypothesis test detect instability in …

undifferentiated final product. If the nominal prices of the differentiated goods are relatively sticky, then unexpected inflation … unexpected inflation abroad. The various versions of the model imply that the relative prices of less competitive goods move …

decreases with core inflation and varies non-monotonically with aggregate uncertainty, (ii) there is an asymmetry in the … response of output to aggregate demand expansions and contractions, which increases with core inflation and decreases with … data from 37 moderate-low inflation countries for the period 1960-1982, we find support for the basic implications of the …

in which positive trend inflation causes firms' relative prices to decline automatically between price adjustments. In …, the effects of sectoral shocks, and the optimal rate of inflation …

earlier times. Inflation prevailed and its persistence increased. The contractions themselves became relatively short and mild …