which adjustment costs apply to the price level but not to the inflation rate. Formal hypothesis test detect instability in …

decreases with core inflation and varies non-monotonically with aggregate uncertainty, (ii) there is an asymmetry in the … response of output to aggregate demand expansions and contractions, which increases with core inflation and decreases with … data from 37 moderate-low inflation countries for the period 1960-1982, we find support for the basic implications of the …

inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model which … resolves this apparent micro - macro conflict. Our model is consistent with post-war U.S. evidence on inflation inertia even …

perspective on the linkages among monetary policy, inflation, and the business cycle. It is argued that the adoption of an …

policy designed to stabilize expected inflation …

currency misalignments are inefficient and lower world welfare. We find that optimal policy must target not only inflation and … targeting rule may involve only the CPI inflation rate. This result illustrates how examination of "instrument rules" may hide … model also gives a rationale for targeting CPI, rather than PPI, inflation …