This paper quantitatively evaluates a steady-state inflation rate that is considered desirable from the perspective of … costs and benefits that accompany inflation. We build a model capable of evaluating the effects, on social welfare, of … social loss with different steady-state inflation rates. We also analyze the range of changes in the steady-state inflation …

a nominal GDP target, which automatically divides an adverse supply shock equally between impacts on inflation and real … supply, exchange rate,or inflation. But the proposal appears in the context of the largest advanced economies. In fact NGDP … output and inflation but a credible rule is needed in order to prevent an inflationary bias that arises under discretion. A …

This paper offers a reappraisal of the inflation-unemployment tradeoff, based on ?frictional growth,? describing the … effects. Although our theory contains no money illusion, no permanent nominal rigidities, and no departure from rational … expectations, there is a long-run inflation-unemployment tradeoff. Our empirical analysis suggests that this Phillips curve may be …

inflation is low. Despite the substantial numbers of individuals whose nominal wages fall from one year to the next, we find … that if long-run inflation is one percent higher, the number of individuals with negative real pay growth increases by …