current account and the reduction of inflation, the main cause in both cases being usually a fiscal deficit. It is shown how … is suggested. Reducing inflation involves both an inflation tax replacement and a price adjustment problem, and …

Understanding the sources of inflation persistence is crucial for monetary policy. This paper provides an empirical … assessment of the influence of inflation expectations' anchoring on the persistence of inflation. We construct a novel index of … inflation expectations' anchoring using survey-based inflation forecasts for 45 economies starting in 1989. We then study the …

Persistent inflation and slow stabilization are usually the result of policy accommodation resorted to in an attempt to … avoid the recessionary costs of a sharp reduction of inflation. This paper reviews three explanations for why policymakers …, despite their dislike of inflation, may nevertheless choose to adopt accommodative policies. It emphasizes the role of …

the model, the paper reviews the inflation and stabilization experiences of several transition economies in Eastern Europe … and the former Soviet Union. These experiences are then compared to those of high inflation market economies. The paper … concludes that, despite significant differences in the economic structure and institutional framework, the inflation and …

Inflation in Albania fell rapidly once comprehensive stabilization policies and market-oriented reforms were launched … inflation. The early reduction of underlying inflation is confirmed by trimmed mean estimates of core inflation, which use a … central portion of the commodity-wise inflation distribution. This also demonstrates the usefulness of estimating core …

This paper develops a theory of inflation inertia based on forward looking staggered price setting in the nontradable … inflation rate take time even if they are fully credible, and they are associated with significant output losses in nontradables …

This paper provides general equilibrium estimates of the steady-state welfare gains of lowering inflation from a low … tax, it is found that inflation unambiguously reduces capital intensity, drives up the before-tax real rate of return to …

This paper revisits the question of the real effects of inflation, on the basis of the experience with 23 high … inflation episodes in 17 countries. It finds strong indications that inflation had contractionary effects on a number of … important macroeconomic variables, such as GDP, investment and employment. Moreover, high inflation led to a significant decline …

This paper provides some empirical estimates on how tightly is it feasible to control inflation in a very small open … inflation and output variability that are achievable under a range of alternative monetary policy rules. These frontiers … illustrate that inflation stabilization is more challenging in Iceland than in other industrial countries primarily because of …

Although few would doubt that very high inflation is bad for growth, there is much less agreement about moderate … inflation’s effects. Using panel regressions and a nonlinear specification, this paper finds a statistically and economically … significant negative relationship between inflation and growth. This relationship holds at all but the lowest inflation rates and …