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 …

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) …

share of inflation variation due to a global factor has become larger since 1985. Third, over most of the post-WWII period …, international comovements regions have accounted for the bulk of fluctuations in business cycle and inflation. Fourth, prices have …

This paper investigates the quantitative importance of various types of distortions for inflation and nominal interest …

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 …