, in particular by capturing the procyclic movements of monetary aggregates, inflation and interest rates. And its …

buy the market good. An increase in inflation raises the price of the corruption service, reduces the non-market good …

The short-run non-neutrality of money and its implications for inflation dynamics are examined in a monetary search … generate short-run non-neutrality. The response of prices and inflation to shocks of this type depends on the changes in … thus may result in sluggish price adjustment and persistent inflation despite the absence of restrictions of sellers …

taxation and higher inflation in the resolution of fiscal crises. In the model government debt is domestically held and nominal …. The key contribution of this mechanism is that it makes unanticipated inflation costly. This permits a generalization of … optimization problem over a tax distortion and an inflation distortion. Higher taxes have a distortionary effect on labor supply …