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 …

This paper estimates the NAIRU (standing for the Non-Accelerating Inflation Rate of Unemployment) as a parameter that … varies over time. The NAIRU is the unemployment rate that is consistent with a constant rate of inflation. Its value is … determined in an econometric model in which the inflation rate depends on its own past values ( inertia ), demand shocks proxied …

innovations, and negatively correlated with inflation innovations. The disinflationary nature of news shocks is consistent with …

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

for output growth and inflation from 1992 to 2011. We find strong evidence of time variation in the pool's weights …