What can account for the different contemporaneous inflation experiences of various countries, and of the same country over time? We present an analysis of the determination of inflation from a political economy perspective. We document a positive correlation between income inequality and...

A dynamic equilibrium model is constructed to analyze the implications of different degrees of central bank independence. In the main model, agents are permitted to vote on the desired inflation and labor taxes to finance government spending. Multiple perfect-foresight equilibria arise, and one...

This analysis investigates modeling the natural rate of unemployment in settings wh ere labor's utilization has some lumpy aspect to it. Specifically, th e introduction of various nonconvexities into tastes and technology l ead to unemployment in general equilibrium. Equilibria can emerge whe re...