upon exchange rate adjustments as a mechanism to correct for PPP deviations arising from divergent domestic inflation rates …

policy and inflation. As a backdrop, we briefly lay out several theoretical approaches to the effects of fiscal deficits on … inflation: the earlier Keynesian and monetarist approaches; and modern approaches incorporating expectations and forward looking … fiscal deficits and inflation generally holds in wartime when fiscally stressed governments resorted to the inflation tax …

This paper asks whether a textbook Phillips curve can explain the behavior of core inflation in the euro area. A … critical feature of the analysis is that we measure core inflation with the weighted median of industry inflation rates, which … is less volatile than the common measure of inflation excluding food and energy prices. We find that fluctuations in core …

of inflation. The first part of the paper considers the ways in which the EMU is likely to affect inflation and cyclical …