employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

and at the beginning of a quarter, on various conditional frequencies of adjustment, inflation and its variability …

We jointly estimate the natural rate of interest, the natural rate of unemployment, expected inflation, and potential …-variation in (i) the data-generation process for inflation, which we capture via a time-varying parameters specification for the … Phillips curve portion of the model; and (ii) the volatilities of disturbances to inflation and cyclical (log) output, which we …

period. The workers’ bargaining power in the hours negotiation affects both unemployment volatility and inflation persistence … cost determination. This set-up produces realistic labor market statistics together with inflation persistence …

This paper examines the impact of downward wage rigidity (nominal and real) on optimal steady-state inflation. For this … Finland). The calibrated heterogeneous agent models are then solved for different steady state rates of inflation to derive … welfare implications. We find that, across the European countries considered, the optimal steady-state rate of inflation …

, consumption, investment and unemployment) has a distinct dynamic from disagreement about nominal variables (inflation and interest … nominal series. Country-by-country regressions for inflation and interest rates reveal that both the level of disagreement and …

shocks from wages to inflation. Downward wage rigidities help explaining the asymmetric business cycle of many OECD countries …

Empirical studies of the "shoe-leather" costs of inflation are typically computed using M1 as a measure of money. Yet … minimized for a positive but moderate value of the inflation rate, thereby justifying a deviation from the Friedman rule in …