optimizing governments might want to repress the financial sector. We also explain why inflation may be negatively related to … intervention is modeled through the inflation tax. Our model has the implication that financial development reduces money demand …. Hence, if the government allows for financial development the inflation tax base, and the chance to collect seigniorage, is …

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 …

monetary policymaking. First, we discuss why trimmed means provide the best measure of core inflation. Second, we outline how … rigidities impede policymakers' ability to control inflation. And third, we describe how alternative shock/rigidity combinations … create inflation's grease (whereby it improves economic efficiency by speeding adjustment) and sand effects (whereby it …

inflation expectations. We develop this measure using assumptions common in economic analysis of open economies. Using quarterly …

in inflation. Coincident with these trends has been a surge in U.S. wealth inequality, with the Gini coefficient up by 0 …, this paper differs from previous work by focusing on only the direct effects of interest rate changes and inflation on the …

for inflation dynamics …

Our current inflation stemmed from a fiscal shock. The Fed is slow to react. Why? Will the Fed's slow reaction spur … more inflation? I write a simple model that encompasses the Fed's mild projections and its slow reaction, and traditional … views that inflation will surge without swift rate rises. The key question is whether expectations are forward looking or …

aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …

This paper highlights the institutional features of the inflation process and contrasts two stabilization efforts in … 1964-66 and in 1986.The inflation process in Brazil is highly institutional. It does not resemble hyperinflations where … pricing and wage setting are geared to the exchange rate by the hour, making it possible to stop inflation by simply …