Inflation persists at moderate rates of 15-30 percent in all the countries that successfully reduced triple digit … inflations in the 1980s. Several other countries, for example Colombia, have experienced moderate inflation for prolonged periods …. In this paper we first set out theories of persistent inflation, which can be classified into those emphasizing …

solutions such as the conservative central banker and optimal inflation contracts. Our theoretical model also shows how an … inflation targeting range should be set and how it should respond to changes in the nature of shocks to the economy …

sustained inflation are small relative to the costs of unemployment. If a temporary reduction in unemployment causes a permanent … increase in inflation, the present value of the resulting future welfare costs may well exceed the temporary short-run gain …. Previous analyses have underestimated the cost of a permanent increase in the inflation rate because they have ignored the …

uncertainty about the composition or timing of a stabilization. Under full certainty, inflation may rise, fall, or remain constant … there is no simple correlation between changes in the budget deficit and inflation. With uncertainty about the timing OF a … stabilization, the inflation rate will most likely exhibit fluctuations and may overshoot its steady state value, even when real …

inflation: the "myopic? government approach and the "weak" government approach. In myopic government models inflation is the … deliberate outcome of politicians strategic behavior, while in weak government models inflation is the unavoidable result of a … political developments in 76 countries for the period 1971-1982. Using a number of alternative definitions of the inflation tax …