The main purpose of this paper is to show that, for any given parameter values, an equilibrium with dispersed prices … (two-price equilibrium) exists in a simple matching model with divisible money presented by Green and Zhou (1998).We also …

sense that it understands and observes the process by which private sector inflation expectations are generated, and one in … which the central bank has to learn the private sector inflation forecasting rule.Here, the learning scheme we investigate … accommodates private sector inflation expectations) is no longer constant across the disinflation, but becomes state …

pact corrects the average debt bias, inflation, which is attuned to the union-average debt level, is more stable. …

inflation-reduction policy. The central idea is that the decision about membership in the union leads to a redistribution …. For example, if joining the union means a decrease in the inflation rate, creditors should favor joining while debtors … should be against it. A government of a high inflation country might strategically try to exploit this effect by selling more …

. We analyze how equilibrium outcomes for inflation, employment, and public spending are affected by the structural … features of an economy, such as money holdings, outstanding public debt, labor-market distortions, society s preferences, and …

monetary policies. Whereas monetary u nification with an optimally designed central bank reduces both expected inflation and … the varia nce of inflation, it harms overall welfare by reducing output and public spending and increasing the variability …