This paper studies the welfare effects of the relative price variability arising from inflation. When agents interact … informational role: a potential customer uses current prices as signals of future prices. Inflation reduces the informativeness of … at moderate inflation rates …

This paper evaluates the Swedish Riksbank's Inflation Reports' and draws comparisons among the Reports issued by the … about each of the three central banks' Inflation Reports'. It assesses the credibility of inflation forecasts, evaluates the …

The fiscal gains from, and hence the political incentives to, an increase in inflation rate of ten percentage points …. The welfare costs of such an inflation increase would have been even larger, however, and would thus have reduced net … welfare. Possible institutional reforms, aimed at making the political costs of inflation more equal to the social costs, are …

target, the long-run Phillips curve becomes non-vertical. During 1997-2011, average inflation expectations in Sweden have …If inflation expectations become firmly anchored at the inflation target even when average inflation deviates from the … been close to the inflation target of 2 percent, whereas average inflation has fallen short of the target by 0.6 percentage …