The resurgence of inflation since the late 2021 is now accompanied by a reversal of prospects of growth, reviving fears … of stagflation across the world (IMF 2022, World Bank 2022). In almost all accounts of the mounting stagflation threats a … prominent role is played by the fall of households' purchasing power, and hence consumption, owing to the inflation shock visà …

prototypical framework is that voters discount their memories about unemployment and inflation at a constant rate. Yet starting …

This paper reviews the literature on the effects of low steady-state inflation on wage formation, focusing on four … different effects. First, under low inflation, downward nominal wage rigidity (DNWR) may prevent real wage cuts that would have … happened had inflation been higher. Second, wages (and prices) are given in nominal contracts, and inflation affects both how …

stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …

case of prevailing inflation, there is a mismatch between the nominal interest rate that is a discounting factor for all …

-term nominal bonds and costly inflation. Our model features two transmission channels of monetary policy: a Fisher channel, arising … from the impact of inflation on the initial price of long-term bonds, and a liquidity channel. The Fisher channel gives the … prices and thus relax borrowing limits. The result is optimal inflation front-loading. Numerically, we find that optimal …

The effect of a permanent change of inflation on the distribution of wealth is analyzed in a general equilibrium OLG … of inflation results in a lower stock market participation rate; in addition, the distribution of wealth becomes more … anticipated inflation are considerably lower than in Imrohoroglu (1992). …

consider the implications of a risk premium that arises from endogenous market segmentation driven by variable inflation rates …. In the absence of autocorrelation in inflation, the risk premium is constant. If inflation is correlated, however, the …