In our dynamic optimizing sticky price model, agents are heterogeneous with regard to their age and their productivity … dominates the substitution effect. This is in line with the adverse effect of productivity shocks on employment found in …

The effect of a permanent change of inflation on the distribution of wealth is analyzed in a general equilibrium OLG … of inflation results in a lower stock market participation rate; in addition, the distribution of wealth becomes more … anticipated inflation are considerably lower than in Imrohoroglu (1992). …

and their productivity. We emphasize three channels through which unanticipated inflation affects the income and wealth …Inflation is often associated with a loss for the poor in the medium and long run. The cyclical effects are basically … distribution: 1) factor prices, 2) the 'bracket creep', and 3) sticky pensions. In our model, unanticipated inflation decreases the …

In our dynamic optimizing sticky price model, agents are heterogeneous with regard to their age and their productivity … dominates the substitution effect. This is in line with the adverse effect of productivity shocks on employment found in …

Recent work on money and endogenous growth finds modest welfare costs of inflation. Furthermore, high inflation reduces … rate of inflation depending on the elasticity of labor supply. Considering the transition dynamics following a change in … the monetary policy, the optimal quarterly inflation rate is found to amount to approximately 3,5% in the benchmark case …