Recent monetary search models emphasize that the real effects of inflation via its impact on price dispersion depend on … the level of search costs and, thus, on the level of market integration. For less integrated markets, the inflation …-price dispersion nexus is predicted to be asymmetrically V-shaped which implies an optimal inflation rate above zero. For highly …

We empirically identify the effect of inflation on relative price distortions, using a novel identification approach … unobserved shocks. Using the micro price data underlying the U.K. CPI, we document that suboptimally high (or low) inflation is … associated with distortions in relative prices. At the level of individual products, the marginal effect of inflation on relative …

inflation targeting, and the granting of operational independence to the Bank of England. In this paper we examine what impact …, if any, these events have had on inflation expectations. A series of Granger causality tests are used in order to examine … the causal relationship between a measure of prices and inflation expectations. We find evidence that the introduction 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 … Granger-causal for low-frequency inflation movements, and all variables affect money growth. We therefore interpret opposite …