This paper looks at the implications of heterogeneous beliefs for inflation dynamics. Following a monetary policy shock …, inflation peaks after output, is inertial, and can be characterized by a Hybrid Phillips Curve. It presents a novel channel … through which systematic monetary policy can affect the degree of inflation persistence. It does so by altering the effective …

This paper looks at the implications of heterogeneous beliefs for inflation dynamics. Following a monetary policy shock …, inflation peaks after output, is inertial, and can be characterized by a Hybrid Phillips Curve. It presents a novel channel … through which systematic monetary policy can affect the degree of inflation persistence. It does so by altering the effective …

Many countries simultaneously suffer from high inflation, low growth and poorly developed financial sectors. In this … inflation on welfare, growth and the size of the financial sector. A novel feature is that the innovation sector is … contrast to previous work, reducing inflation generates large growth gains. These large gains cannot be easily reproduced by …

. To illustrate, when cash prices are equally distorted in both models equally large welfare costs of inflation are …