hypotheses analyzed are: (i) the supply-side effects associated with an inflation decline; (ii) the perception that the exchange …

ante wage indexation speeds up disinflation. With expost indexation the real wage automatically rises when the inflation …

This paper investigates the effects of wage indexation on the time-consistent level of inflation. Departing from … previous work on time-consistent policy, we study a structural model of the economy. Indexation reduces the cost of inflation … raise inflation but also to raise welfare: the loss from higher inflation is outweighed by the gain from greater protection …

reforms may cause jumps in inflation and the exchange rate through their impact on the government budget. In order to achieve … a sustainable reduction in inflation an exchange rate freeze or crawling peg is shown to require restrictions not only …-collapse inflation will exceed the rate prevailing before the freeze started …

This paper presents a single reduced-form inflation equation that can explain both the variance and acceleration of … inflation during the 1970s.Inflation is explained by four sets of factors. Aggregate demand enters through the lagged output … ratio and the growth rate of nominal GNP. The adjustment of inflation to changes in aggregate demand is limited by the role …