of economic policies. Of particular interest, of course, are the dramatic changes in inflation as a consequence of the … considered to be of decisive importance in combating inflation. Although we cannot provide a formal test for the importance of …

revisit claims in the literature that money growth is Granger-causal for inflation at low frequencies. Applying frequency …-specific tests in a comprehensive system setup for euro-area data we consider various theoretical predictors of inflation. A general …-to-specific testing strategy reveals a recursive structure where only the unemployment rate and long-term interest rates are directly …

fiscal stance and inflation using crosscountry data from 1965 to 1999. In a first step, we contrast the monetary … that the low-frequency relationship between the fiscal stance and inflation is low during periods of an independent central … illustrate the mechanisms through which fiscal actions affect inflation in the long run. The findings from the DSGE model suggest …

world. Compared to existing models of this type, GEAR incorporates a comprehensive fiscal block, involuntary unemployment …

unemployment. Second, we construct a New Keynesian model with heterogeneous workers and firms, incomplete asset markets, and labor … level and volatility of both the separation and unemployment rate at the cost of tying workers to less productive firms …

different response on the rate of inflation. Our results show that under fiscal dominance, unconventional monetary policy has … similar effects to conventional monetary policy on inflation because these wealth effects exert downward pressure on prices …