rigidity makes the economy prone to involuntary unemployment during external crises. This paper presents a graphical analysis …

literature, cannot explain the persistence observed in actual inflation. We argue that two of the more prominent alternative …, are highly problematic. Fuhrer and Moore (1995)'s formulation generates inflation persistence, but this is a consequence … that workers care about the current real wages of other workers, one obtains the standard formulation with no inflation …

for the unemployment-inflation tradeoff and for the conduct of monetary policy.lt;brgt;lt;brgt;We proceed in two steps. We … staggered price setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by …We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications …

unemployment on inflation, for given expected inflation, decreased until the early 1990s, but has remained roughly stable since …-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a … breakdown of the relation between inflation and activity. To examine the first, we look at 122 recessions over the past 50 years …

. This suggests that currency depreciation can help reduce unemployment only insofar as it is associated with inflation, and …This paper discusses three policy tools to mitigate jobless recoveries during financial crises: inflation, real … document that large inflationary spikes appear to help unemployment to get back to pre-crisis levels. However, the counterpart …

This paper describes a new data set of the forecasts of output growth, inflation, and unemployment prepared by …

inflation expectations. We develop this measure using assumptions common in economic analysis of open economies. Using quarterly …

Brazil has had a long period of high inflation. It peaked around 100 percent per year in 1964, decreased until the … crisis in the early 1980s. We show that the high-inflation period (1960–1994) was characterized by a combination of fiscal … deficits, passive monetary policy, and constraints on debt financing. The transition to the low-inflation period (1995 …

common monetary authority chooses inflation for the union, also without commitment. We first describe the existence of a … wisdom that all countries should prefer a union with low-debt members, as such a union can credibly deliver low inflation …