-pricing theory, is calibrated to analyze the effects of monetary policy and financial innovation. We show that inflation can raise … output, employment and investment, plus improve housing and stock markets. For the baseline calibration, optimal inflation is …

Sargent and Wallace (S-W) show that, even when inflation is prima facie a strictly monetary phenomenon -- prices are … flexible, markets clear and velocity is constant -- inflation is, in the long run, a fiscal phenomenon. This follows from the … published government deficit figures for the effect of inflation on the real value of the stock of nominal government debt (as …

implications for monetary policy; and "super crowding out." Many considerations suggest that monetarism as theory and policy might … theory; the roles of stock .and flow variables and the stability of asset demand and expenditure functions; the relation …

leading proponents of monetarism, have not always been advocates of a constant money growth rate. It may nevertheless he … useful to relate one's thoughts about monetarism to Friedman's rule, as will be done in this paper. But the question that …) There is no permanent tradeoff between unemployment and inflation or any other characteristic of the path of the price level …

monetarism: Milton Friedman and the team of Karl Brunner and Allan Meltzer. Friedman did not explicitly state the reasons he …-LM to encompass both the quantity theory and the income-expenditure theory. Friedman attributed the failure of this effort …

money now can cause higher inflation in the future. In spite of the qualifier 'unpleasant,' this result is positive in … central bank to delay inflation by issuing debt to finance part of the fiscal deficit. The analysis is conducted in the … optimal to delay inflation, it does so knowing that it would result in higher inflation in the future. The central result of …

models, prices are sticky by assumption; here it is a result. We use search theory, with two consequences: prices are set in …