Empirical evidence suggests that inflation has positive effect on both output and unemployment in the long run in the … United States. This paper develops a monetary model in which a higher inflation rate increases both output and unemployment … along with endogenous labor force participation creates a channel by which a higher inflation rate increases output …

interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

during the transition period. The study makes use of the monetary inflation model known as the P-star model, originally … prices (long-run cointegration relationship), which follows the assumptions of the P-star inflation model. The results also … indicate that there are no seasonal cointegrating relationships in the P-star inflation model, which can be interpreted as the …

motives of demand for monetary balances. Furthermore, a critical finding estimated in the paper is that domestic inflation has … constructed on domestic inflation as a function of the excess money demand taken place under the money market disequilibrium …

money stock can be used to explain and/or predict GDP deflator inflation over the sample period. The results show that the … money gap measure dominates the output gap as an explanatory variable for inflation in the short run. However, the money gap … does not seem to be a proper indicator for predicting inflation over longer horizons, say, 12 months ahead. There are some …

subsequent inflation when accounting for equilibrium velocity movements due to inflation regimes changes. These movements, driven … equilibrium velocity and interest rate movements biases cross-country and time series dynamic money growth / inflation estimated …

low but still positive rates of inflation, provides an adequate approximation in welfare terms to the alternative of …