nominal and real rigidities at low rates of inflation. The purpose of this paper is to analyse whether there are any grounds … changes in inflation with changes in standard measures of output and labour market slack. The empirical evidence shows that …, as the average rate of inflation for the 19 countries in our sample has fallen from 8% to 3½%, the average sacrifice …

Iceland was a high inflation country from the second half of the seventies and until the middle of the eighties. During … the middle of the nineties inflation in Iceland, at less than 2% p.a., was among the lowest in the OECD. In this paper we … analyse the roots of high inflation in Iceland and the subsequent disinflation episode. We find that high inflation in Iceland …

periods when both inflation and unemployment have increased far above historical trends, it is somewhat unsatisfactory to … assume that the level of unemployment is exogenous and independent of the inflation process. Moreover, considering the …