costs driven by changes in factor prices than to increases in marginal cost precipitated by expansions in output. We explore …

A relation between inflation and the path of average marginal cost (often measured by unit labor cost) implied by the … capital is firm-specific and endogenous, and investment is subject to convex adjustment costs. The aggregate-supply relation … is shown to again take the standard "new-Keynesian" form, but with an elasticity of inflation with respect to real …

model displays inflation persistence and endogenous cost-push shocks …

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

Sticky-price models with rational expectations fail to capture the inertia in U.S. inflation. Models with backward …-looking expectations capture current inflation behavior, but are unlikely to fit other monetary regimes. This paper seeks to overcome these … problems with a near-rational model of expectations. In the model, agents make univariate forecasts of inflation: they use …

literature by considering a local approximation around a zero inflation steady state and introducing idiosyncratic shocks. The …

each country faces a short run tradeoff between output and inflation. The model is sufficiently tractable to solve … response to domestic inflation, under cooperation they should respond to foreign inflation as well. In either scenario …

shocks have their maximum impact on inflation with a substantial delay. Third, the change in inflation is positively …

state variable that carries information about all past inflation rates; (2) as the degree of staggered price indexation … inflation and amplifies its effect on output; (4) fixing the probability of a price change to 33% per quarter (in accordance … estimated model, staggered indexation explains more than half of the observed persistence of inflation in the United States …