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 …

- although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … asserted that, in the context of the new Phillips curve (NPC), inflation is a jump variable. We argue that this persistency … setting (in which real variables not only affect inflation, but are also influenced by it), standard wage-price staggering …

expectations and uncertainty, albeit to a much lesser extent than the domestic policy changes. …

therefore expectations driven fluctuations may be eliminated in the world. In any case, stochastic and deterministic …

Money illusion means that people behave differently when the same objective situation is represented in nominal terms … differences in nominal price inertia indicating the behavioral importance of money illusion. In particular, if the payoff … information is presented to subjects in nominal terms, price expectations and actual price choices after a fully anticipated …

Money illusion means that people behave differently when the same objective situation is represented in nominal terms … differences in nominal price inertia indicating the behavioral importance of money illusion. In particular, if the payoff … information is presented to subjects in nominal terms, price expectations and actual price choices after a fully anticipated …

consumer price inflation rate. …

and real wage rigidities. In our analysis, we focus on the differentials in inflation and unemployment between countries … inflation and unemployment differentials. Second, we find that asymmetries in labor market structures tend to increase the … volatility of both inflation and unemployment differentials. Finally, we show that it is important to take into account the …