ambiguous effects w.r.t. to the impact of capital market risk as well as inflation risk, which is due to the interplay of … response to positive changes in inflation risk and capital market risk, respectively, with both effects lasting permanently. …

model with costly price adjustment to study the optimal rate of inflation when there are trends in relative prices and to … construct hypothetical U.S. inflation rates that would have minimized the costs of price adjustment implied by the model …