A growing theoretical literature argues that aggregate price flexibility and the inflation-output tradeoff faced by … constant inflation-output tradeoff in favor of a slope that increases with microeconomic volatility. In contrast, there is no … evidence that the inflation-output tradeoff varies with aggregate volatility or the business cycle more generally. Furthermore …

Episodes of unanticipated inflation reduce the real value of nominal claims and thus redistribute wealth from lenders … to borrowers. In this study, we consider redistribution as a channel for aggregate and welfare effects of inflation. We … model an inflation episode as an unanticipated shock to the wealth distribution in a quantitative overlapping …

inflation, strong real wage growth, and low rate of unemployment in the U.S. economy during the late 1990s. Many of these …

real GDP, of the output gap, and of the inflation rate. The primary results of the paper are based on a small three …-equation macro model that includes equations for the inflation rate, the nominal Federal Funds rate, and the change in the output gap … the model%u2019s inflation equation, and the error term in the output gap equation that is interpreted as representing %u …

This paper first outlines the key stylized facts about changes in inflation dynamics in recent years: 1) inflation … persistence has declined, 2) the Phillips curve has flattened, and 3) inflation has become less responsive to other shocks. These … changes in inflation dynamics are interpreted as resulting from an anchoring of inflation expectations as a result of better …

We use an agent-based computational approach to show how inflation can worsen macroeconomic performance by disrupting … the mechanism of exchange in a decentralized market economy. We find that increasing the trend rate of inflation above 3 … significant negative effect of trend inflation on output even when such an effect exists in reality. …

stimulus mostly generates inflation rather than output growth. To do this, I construct price-setting models with "volatility …