past inflation during the Great Inflation but not during the Great Moderation. However, most DSGE models assume fixed … monetary policy. We find that workers index their wages to past inflation when technology and permanent inflation-target shocks … drive output fluctuations; when aggregate demand shocks do, workers index to trend-inflation. In addition, workers' choices …

The non-accelerating inflation rate of unemployment (NAIRU) is not directly observable and the presence of informal …

generally find that deflation terms contributes negatively to such a premium and inflation positively. The magnitudes of the … coefficients associated with deflation tend to be greater, compared to those associated with inflation. This suggests that …