instability or inflation instability -- could cause policymakers to exercise restraint in their response to cyclical weakness …

dispersion reduces welfare by creating mismatch between posted prices and money balances. Inflation exacerbates this welfare loss … simultaneous search or any heterogeneity in preferences, production costs, or search technologies. A distribution of money holdings … price distribution, in turn, makes buyers indifferent across a range of money balances, rationalizing the non …

strengthen the countercyclical behavior of markups and attenuate the response of inflation to fluctuations in output …

I revisit the Great Inflation and the Great Moderation for nominal and real variables. I document an immoderation in … the Great Inflation was driven by bad luck, the Great Moderation was mostly due to better institutions; (ii) the slowdown …

inflation volatility and mean unemployment rate is feasible when an asymmetric policy rule is adopted …