may operate in harmony or against demand and the net effect is what we call the "basic inflation." Contrary to a …-priori notions of positive association between inflation rates and profit rates, our theory proposes a critical test of a negative … total inflation. These pressures would be present even if no increase in cost occurs. This suggests that an important cause …

successful at describing the history of U.S. inflation. Motivated by these observations, I ask: Can we understand the history of … 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 …

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

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 …

break new ground on this question by developing a market-based measure of general inflation expectations during the gold … standard. Since the gold-silver price ratio was widely used to track inflation during the gold standard period, we are able to … derive a measure of inflation expectations using the interest-rate differential between Austrian silver and gold perpetuity …

small shocks, and so large shocks have disproportionate effects on the price level. Therefore, aggregate inflation depends … on the distribution of relative-price changes: inflation rises when the distribution is skewed to the right, and falls … postwar U.S. inflation. Moreover, our model suggests measures of supply shocks that perform better than traditional measures …