We analyze empirical links between the perceived tail-risk of inflation, the policy rate, longer-term interest rates … always in reaction to Fed announcements; and, (v) our impulse responses demonstrate that odds of extreme inflation outcomes …

increase in conservatism triggers two opposite effects. It reduces the inflation bias of discretionary monetary policy and …

to support the standard objection to such policies: that they will lead to uncontrollable inflation. Theoretical models … support for a relationship between monetary financing and inflation. The findings lend support to recent calls for explicit …

This paper examines the causal link between education and democracy. Motivated by a model whereby educated individuals … are in a better position to assess the effects of public policies and hence favor democracy where their opinions matter … results hold across countries with different levels of democracy, thus rejecting the hypothesis that indoctrination through …

mutual consent. If inflation is so low that nominal wages have to be cut, the workers have strategic advantage in the wage … negotiations, which induces higher unemployment in equilibrium. The upshot is a long run tradeoff between inflation and … unemployment for low levels of inflation. Specifically, downward nominal wage rigidity, and excess unemployment at zero inflation …

This paper shows that in ation in industrialized countries is largely a global phenomenon. First, the inflation rates … variance share that is associated with Global Inflation is not only due to the trend components of inflation (up from 1960 to … comovement of inflation comes largely from common shocks. Global Inflation is a function of real developments at short horizons …

The aim of this paper is to provide comprehensive empirical evidence on recent theories that link democracy and income … appears that income inequality is unconditionally persistent. Results hold for two different democracy proxies and when …

/depreciations and inflation by estimating nonlinear time series models. Motivated by theoretical and empirical results in the literature …-through regimes depending upon the magnitude of appreciations of a currency and inflation rates both in the short-run and in the long …