monetary and macroeconomics made in Don Patinkin's Money, Interest, and Prices (MIP). Its first accomplishment was to settle …

This paper analyzes the long-run determinants of inflation differentials in a monetary union. First, we aim at …some stylized facts relating the regional dispersion in headline inflation rates in the euro area as well as in the … prices, the long-run properties of which are analyzed. Our model departs in several respect from the Balassa …

helps explain the well known puzzle that fundamental variables such as relative money supplies, outputs, inflation and …

multiple solutions in rational expectations (RE) models. In three of these cases--involving inflation forecast targeting, the …

In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating …-constrained consumers is determined by their real wage, which depends on prices in the flexible price sector. Thus, prices in the flexible … stabilize price movements in the flexible price sector. Also, in the presence of financial frictions, stabilizing core inflation …

inflation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable … loss function (corresponding to flexible inflation targeting) is discussed, including the index and level for the inflation … price stability. The benefits of credibility (private inflation expectations coinciding with the inflation target) are …

out to be only a slowdown, and inflation never departed from levels consistent with the ECB's quantitative definition of …

banks set interest rate targets, and do not even pretend to control money supplies. How is inflation determined under an …We finally have a complete theory of inflation under interest rate targets, that mirrors the long-run neutrality and … frictionless limit of monetary theory: Inflation can be stable and determinate under interest rate targets, including a k percent …