inflation rate, with and with- out an increase in the risk premium on equities, was then simulated with a number of model … cost was 3 percentage points less than that for corporate capital) and the manner in which inflation magnifies it (the … finance instruments would overcome this reallocation but at the expense of corporate capital. Only a reduction in inflation or …

We analyze the dynamics of inflation in an economy characterized by a forward-looking, staggered, price and wage … determination process, and by monetary accommodation. In our model, inflation reconciles the conflicting claims of workers and firms …. The model is capable of generating a positive association between real wages and inflation, of the type that has been …