movements in aggregate output and inflation in response to a nominal shock. Two modifications of a standard one-quarter pre …, simulations based on estimated shocks to tfp and money growth suggest both output and inflation are too volatile relative to the …

Most of the papers in the sticky-price literature are based on a log-linearization around the zero inflation steady … state, a simplifying but counterfactual assumption. This paper shows that when trend inflation is considered, both the long … results obtained by models log-linearized around a zero inflation steady state are quite misleading. Furthermore, the same is …

monetary authority responds to that shock by changing its inflation objective. Specifically, higher inflation raises households …' nominal capital gains taxes since those taxes are not indexed to inflation. The increase in taxes behaves as a negative wealth … extended period of low labor productivity and high inflation. The real effects from the increase in nominal capital gains taxes …

in driving inflation as globalization increases. We investigate the empirical evidence in favor of this prediction by … inflation in many countries, yet its influence did not become stronger over time. Second, a panel analysis that exploits the … positively related to the effects of global slack on inflation. We conclude that integration in the global economy is in fact …

while cash is used in all transactions. Higher inflation or lower reserve requirements raise the deposit interest rate … differential impacts on the terms of trade in transactions using different means of payment. During high inflation, individuals …

rate policy helps to reconcile the inflation and output persistence with empirical observations for the US economy. We show … findings for the inflation inertia in a model with capital adjustment costs and variable capacity utilization, the output …

volatilities of inflation and output. (Copyright: Elsevier) …

, inflation is higher and the return on money decreases. In equilibrium, no arbitrage amounts to equating the real return of both … inflation and asset returns is in the spirit of research in finance initiated in the early 80's. (Copyright: Elsevier) …

There are several models of outside money in which some inflation accomplished through lump-sum transfers is optimal …. It is shown here that inflation can be optimal in a model of inside money, essentially the model in Cavalcanti …-Wallace (1999). The possibility of inflation comes about via the trades between people who can issue inside money, monitored people …

suddenly caused a big jump in inflation in Israel in October 1983. That month, the government promised that four or five years … government would finance that debt via a future monetary expansion. That sparked an immediate jump in inflation via the …