standard search and matching model in explaining the joint behavior of vacancies, unemployment and labor productivity (see Hall … searchers (employed and unemployed), which reduces the volatility of real wages. At the same time, the vacancy-unemployment … transmission of monetary shocks. The less cyclical real wages are, the lower we can expect inflation volatility to be. …

Inflation equals the product of two terms: the fraction of items with price changes (whose volatility figures … time-dependent pricing models). The variance of inflation over time can be decomposed into contributions from the variance … this decomposition for consumer price inflation from February 1988 through April 2003. We find that 90% of the variance of …

summarised as follows. (1) Historically, inflation persistence appears to have been the exception, rather than the rule, with … inflation estimated to have been highly persistent only during the period between the floating of the pound, in June 1972, and … the introduction of inflation targeting, in October 1992. Under inflation targeting, it exhibits some slight negative …

incorporate some “rule-of-thumb†price-setters that index to inflation over recent periods. These models are estimated for the … inertia in inflation than the baseline sticky-price model, its overall fit is worse. The results point toward substantial … gains in terms of fit for hybrid models with indexation that smoothes through quarterly volatility in inflation and clarify …

. Under discretionary monetary policy the size of the inflation bias depends on the fiscal policy regime. Using the timeless … alternative fiscal policy rules, and inflation and output persistence reflects the economic data. With the deficit rules, the …

inflation? We develop and test versions of the model for which the answer to this question is yes. We then investigate whether …

In the late 1960s and into the 1970s, the United States experienced a burst of inflation the origins of which seemed … have arrived at the erroneous conclusion that its output-inflation trade-off was better than is truly the case. This … equilibria and restore stability of inflation expectations. An implication of this is that the observed higher volatility of the …