-priori notions of positive association between inflation rates and profit rates, our theory proposes a critical test of a negative … mechanism follows from our theory that when the profit rate is above a normal-target rate, competitive forces operate to lower … as a strategy to improve profitability. The notion of "correlated strategy" is adopted from game theory. The mechanism …

This paper studies the relationship between inflation, output, money and interest rates in the euro area, using data … power for future inflation. The real money gap contains more information about future inflation than the output gap and the … Eurosystem's money-growth indicator is an inferior indicator of future inflation …

state) inflation; cyclical interaction of inflation with real variables; and positive analysis of monetary policy behavior …. With regard to ongoing inflation, the paper demonstrates that the principal conclusions of theoretical analysis are not …. Whether one assumes finite-lived or infinite-lived agents, such models suggest that steady-state inflation rates will conform …

measures of arginal cost as the relevant determinant of inflation, as the theory suggests, instead of an ad-hoc output gap …We develop and estimate a structural model of inflation that allows for a fraction of firms that use a backward looking …. Real marginal costs are a significant and quantitatively important determinant of inflation. Backward looking price setting …

U.S. inflation using a framework that ignores monetary frictions? The fiscal theory of the price level allows us to … history of U.S. inflation with a fiscal-theory, frictionless view. I show how the fiscal theory can accommodate the stylized …Financial innovation challenges the foundations of monetary theory, and standard monetary theory has not been very …

-price changes, and an index of equiproportional changes in all inflation rates, that we label quot;purequot; inflation. The paper … price changes to fundamental economic shocks. We use the estimates of the pure inflation and aggregate relative …-price components to answer two questions. First, what share of the variability of inflation is associated with each component, and how …

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 …

both with inflation and with nominal interest rates. This paper examines whether these findings extend to the short … inflation and nominal interest rates does appear for the longer maturity assets. In fact, the relationship grows stronger with … best hedge against expected inflation, none of the assets were a perfect hedge. We find a statistically significant change …

with expected inflation. Given the importance of this adjustment for questions of both monetary theory and monetary policy … nominal interest rates and expected price inflation, portfolio behavior is the most plausibly flexible in the short run. Since … important lenders' portfolio behavior can be in bringing about the adjustment of interest rates which Fisher's theory associates …