inflation, the usual type of wage indexation observed in practice. Drawing mainly on recent research by the author, this paper … examines the consequences of wage indexation to lagged inflation on aggregate wage formation, the cost of disinflation under … choice of exchange rate regime, and the level and variability of inflation …

lagged inflation tend to destabilize output regardless of whether shocks are nominal or real …

For a sample of US industries, nominal wage and price inflation follow aggregate price inflation closely during … contras to producers’ attempt to maintain, or even increase, industrial real price inflation during recessions. Consistently …

This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the … findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad … retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing …

currency by keeping inflation low and steady. This paper provides evidence that monetary policy tightening aimed at maintaining … low and stable inflation could at the same time reduce consumption inequality over a 12-18 month horizon, commonly … benefit mainly from lower inflation. By contrast, the real consumption of individuals at higher ends of the consumption …

Determining the magnitude and speed of the exchange rate passthrough (ERPT) to inflation has been of paramount …-makers should continue to pursue low and stable inflation and develop a strong track record of prudent macroeconomic policies for …