aggregate job creation and creates inefficient dispersion in hiring rates across firms. Targeting zero inflation (the optimal …-zero inflation in response to real shocks, so as to reduce the rigidity of real wages. Quantitatively, the case against price …

I analyze the effect of search frictions on inflation dynamics, in a New Keynesian model where firms make both pricing … empirical performance along a number of dimensions. First, inflation becomes more persistent. Second, output responses to …

I analyze the effect of search frictions on inflation dynamics, in a New Keynesian model where firms make both pricing … empirical performance along a number of dimensions. First, inflation becomes more persistent. Second, output responses to …

inflation, the usual type of wage indexation observed in practice. Drawing mainly on recent research by the author, this paper … examines the consequences of wage indexation to lagged inflation on aggregate wage formation, the cost of disinflation under … choice of exchange rate regime, and the level and variability of inflation …

, prompting them to raise markups and prices in anticipation of potentially higher future inflation. These findings establish a … connection between heightened uncertainty, higher core inflation, and increased profits. …

the central bank is to stabilize inflation. On the other hand, if the shift arises from an increase in the elasticity of … employment matches with respect to vacancies, then the policy maker faces a trade off between stabilizing inflation and … Taylor rule that targets inflation and output growth, the optimal monetary policy is more aggressive in pursuit of its …