employment and hours affecting inflation dynamics via marginal costs. We find that the response of unemployment and inflation to … persistent movements of aggregate inflation. Moreover, the impact of a monetary policy shock on unemployment and inflation …

inflation and the stabilization of the welfare relevant output gap after a productivity shock hits the economy. When the … standard model is enhanced by real wage rigidities or labor turnover costs, an endogenous short-run inflation-output tradeoff … rigidities. Second, labor turnover costs are the dominant source for the inflation-output tradeoff when both rigidities are …

, we study the implications of different inflation regimes on the racial unemployment gap. Higher trend inflation increases …

an estimated DSGE model. It finds that the disconnect is due primarily to the muted reaction of inflation to cost … inflation stabilization also appears to have played some role by reducing the impact of demand shocks on the real economy. The …

precautionary saving is strong enough, a rise in uncertainty leads to i) a drop in inflation; ii) amplified negative responses of …

-specific labour imply a sufficient degree of real rigidity, and so can reproduce inflation dynamics well. However, they imply too … little real rigidity and, so, too volatile inflation, owing to strong responses of marginal wages and hours per employee … the responses of wages, inflation and employment …

monetary policy, whose optimal response involves partly accommodating core inflation so as to indirectly sustain employment …

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to …

stabilization policy is pronounced. The wealth rich or retired tend to favor inflation targeting. The wealth-poor working class …, instead, favors unemployment-centric policy. One- and two-agent alternatives can show unanimous disapproval of inflation …-centric policy, instead. We highlight how the political support for inflation-centric policy depends on wage setting, the tax system …