Monetarism is that solid microfoundations are critical for understanding monetary issues. We survey recent papers on monetary … theory, showing how they build on common foundations. We then lay out a tractable benchmark version of the model that allows … inflation, the relationship between money and capital accumulation, and the Phillips curve. We also extend the benchmark model …

This essay articulates the principles and practices of New Monetarism, our label for a recent body of work on money … Monetarism has something in common with Old Monetarism, but there are also important differences; it has little in common with …, we build a benchmark New Monetarist model, and use it to study several issues, including the cost of inflation, liquidity …

approach to economic theorising. -- Friedman ; macroeconomics ; Keynes ; Keynesianism. monetarism ; money ; inflation ; cycle … development of today's mainstream, stochastic, but essentially Walrasian, macroeconomic theory, rooted in his explicit deployment … of econometric theory in the analysis of forward-looking maximising behaviour in 1957, and in his later work on the …

This paper studies the welfare costs and the redistributive effects of inflation in the presence of idiosyncratic … money demand and the distribution of money holdings across households, and study the effects of inflation under the implied … inflation are on average 40% smaller compared to a complete markets, representative agent economy, and that inflation induces …

The present paper explores the connection between inflation and unemployment in different models with fair wages both … function, more inflation lowers the unemployment rate, though to a declining extent. This is because firms respond to inflation … inflation on effort. A stronger effect of nflation on unemployment is also produced under varying as opposed to fixed capital …

reactiveness of inflation to the unemployment rate. In regard to a monetary union, the national unemployment multiplier in the …

of money, it causes inflation, in the absence of monetary intervention. If the monetary authority attempts to restore pre … credit cards, there is even more inflation, and less efficiency gains. The monetary authority might then have to accept less … than pre-credit card efficiency in order to restore pre-credit card price levels, or else it will have to accept inflation …

We argue that long-run inflation has nonlinear and state-dependent effects on unemployment, output, and welfare. Using … anticipated inflation and unemployment. Second, there is also a positive correlation between anticipated inflation and … unemployment volatility. Third, the long-run inflation-unemployment relationship is not only positive, but also stronger when …