We extend the `rational-partisan' model of inflation to allow for the effects of unemployment persistence on the … dynamics of inflation. We combine this model with the `exchange-rate-regime' model of inflation and examine the experience of … the United Kingdom. Outside the fixed exchange rate regime of Bretton Woods, persistently high inflation can be attributed …

shifts in the parameters of wage equations when the process generating price inflation changes. The two major shifts that we …

natural rate of unemployment. In addition, because of differential inflation across countries, real exchange rates become …

steady-state increase in seigniorage revenue. In fact, the inflation rate slightly exceeds the seigniorage-maximizing rate …

This paper investigates the relation between the dynamics of inflation and exchange-rate regimes. It demonstrates that … associated with negligible persistence of inflation in the industrial economies, while regimes of managed exchange rates are … associated with very high persistence of inflation: the interwar period is associated with persistent deflation, the more recent …