inflation. A dynamic stochastic general equilibrium model with heterogeneous agents is studied. Incomplete markets induce agents … equilibria, I measure the welfare cost of inflation by explicitly modeling the transitional dynamics that arise following a … change in monetary policy. Transitional dynamics are shown to increase the welfare cost of inflation substantially. Also …

This study examines the link between various monetary policy regimes and the ability to manage inflation and exchange … hypothesis is that a system of 'flexible inflation targeting' may be an optimal policy choice for managing these two categories … of risk. A model of inflation and exchange rate risk premiums within the context of inflation targeting is proposed …

Inflation in Central and East European countries varied considerably over the transition phase, and econometric … some light on the issue, this paper analyses some empirical models of the inflation process in the three earliest east … experienced high rates of inflation, although significant disinflation measures were introduced during the mid-nineties to enhance …