generate substantial inflation. Such a shock induces an equilibrium decline in the relative price of services. If price … increase in goods prices, resulting in, on net, little inflation. If prices in the services sector are downwardly rigid …, however, this takes place mostly through an increase in goods prices, resulting in inflation. To illustrate the relevance of …

Historically, inflation is negatively correlated with stock returns, leading investors to fear inflation. We document … cornerstone of modern macroeconomic theory. …

relating unemployment and vacancies to inflation, the link between these labor market indicators and inflation depends on …

-rate process is truncated at zero. Despite its simplicity, a version of this model incorporating inflation can fit longer …

empirically important and dampen the effects of monetary disturbances on inflation. While the signaling effects enhance the …

announcements by the fiscal and monetary authorities can lead to high inflation and large output losses. The policy trade-off can be …