This study constructs measures of aggregate price uncertainty for four industrialized countries (Canada, West Germany … countries and through time between the rate of inflation, inflation variability, and our measures of price uncertainty. In …. Our results suggest that the higher and more variable inflation of the 1970s did increase uncertainty about the aggregate …

In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating … stabilize price movements in the flexible price sector. Also, in the presence of financial frictions, stabilizing core inflation … frictions a welfare-maximizing central bank should adopt flexible headline inflation targeting--a target based on headline …

-price changes, and an index of equiproportional changes in all inflation rates, that we label "pure" inflation. The paper estimates … changes to fundamental economic shocks. We use the estimates of the pure inflation and aggregate relative-price components to … answer two questions. First, what share of the variability of inflation is associated with each component, and how are they …

contributed to financial instability during 1790-1933, and that inflation rate shocks contributed to financial instability during …

contributed to financial instability during 1790-1933, and that inflation rate shocks contributed to financial instability during …

debt matters. For example, it determines whether news of future deficits implies current inflation or future inflation …. When long term debt is present, the government can trade current inflation for future inflation by debt operations; this … variance of inflation. I find cases in which long-term debt helps to stabilize inflation, and I find that the optimal inflation …

We test whether the time-series positive correlation of inflation and intermarket relative price variability is also … higher than average inflation also have higher than average relative price dispersion, ceteris paribus. This result holds for … part of the relationship between inflation and relative price variability cannot be explained by monetary factors …