" – although they generate price inertia, they cannot account for thestylised fact of inflation persistence. It is thus commonly … asserted that, in the context of thenew Phillips curve (NPC), inflation is a jump variable... …

hyperbolic discounting leads to inflation having significant long-run effects on real variables... …

in an economy. It presents a monetary growth model in which inflation affects credit market efficiency, and via this link … offspring which serve as internal finance, more of which promotes credit market efficiency and capital formation. Inflation acts … proceeds of the inflation tax to capitalists or workers, inflation decreases the steady-state capital stock, although the …

The tug-o-war for supremacy between inflation targeting and monetary tar-geting is a classic yet timely topic in … the nature of shocks, the optimal inflation target isalways positive. Under monetary targeting, shocks to endowment … on the elasticity of consumption substi-tution. Also, monetary targeting welfare-dominates inflation targeting but thegap …

inflation rate? In this paper, wemake a …rst attempt at studying the optimal choice of monetary policy in-struments in a micro … under inflation rate targeting, it is always optimal to pur-sue an expansionary policy, it is never optimal to do so under …

a reasonable explanation for the differences in the pattern of inflation between the two countries. …

examine the relevance of the cost channel for inflation dynamics in G7 countries. Since firms’ costs of working capital … inflation responses to monetary policy shocks, and can even lead to inverse inflation responses, when the cost channel is …