This paper shows how uninsurable unemployment risk is crucial to qualitatively and quantitatively match macro responses … behaviors, triggering a fall in aggregate demand and supply. These precautionary behaviors increase the unemployment risk of the … imperfectly insured households, who strengthen precautionary saving. When the feedback loop between unemployment risk and …

generate substantial inflation. Such a shock induces an equilibrium decline in the relative price of services. If price … increase in goods prices, resulting in, on net, little inflation. If prices in the services sector are downwardly rigid …, however, this takes place mostly through an increase in goods prices, resulting in inflation. To illustrate the relevance of …

Foreign price shocks have significant effects on functional income distribution and on inflation inequality. By ….g. food prices for low-wage workers). Based on the conflicting-claims inflation literature, we propose a new extension to this … with an inflation-targeting regime. We investigate the impacts of foreign price shocks on income and inflation inequality …

inflation and real rigidity. Analytically, I find that important dynamics in the NKPC are canceled out due to the restrictive … dynamic structure introduced by the non-constant hazards is also quantitatively important to the inflation dynamics …. Incorporation of real rigidity and trend inflation strengthen this effect even further. With reasonable parameter values, the model …

This paper develops a model of inflation in an open economy. The model permits analysis of the susceptibility of open … paper arrives at a “structuralist inflation targeting agenda”. Based on a proper conception of inflation dynamics, this … involves “getting inflation targeting right” rather than either accepting mainstream inflation targeting prescriptions or …

We document empirical regularities of disaggregated inflation and consumption and study whether multisectoral New … Keynesian models can explain them. We focus on higher moments of the inflation and consumption growth distributions as well as … on the contemporaneous comovement of these two variables. We find that the sectoral distributions of inflation and …

This paper reviews the post-Keynesian theory of inflation against the background of the simultaneous rise in inflation …-are discussed. The paper applies the latter to elucidate recent inflation trends propelled by increasing imported energy prices and … then rising mark-ups. The effects of inflation-targeting central bank interest policies versus a post-Keynesian alternative …

inflation and real rigidity. Analytically, I find that important dynamics in the NKPC are canceled out due to the restrictive … dynamic structure introduced by the non-constant hazards is also quantitatively important to the inflation dynamics …. Incorporation of real rigidity and trend inflation strengthen this effect even further. With reasonable parameter values, the model …

accounts of profit inflation, wherein U.S. firms' market power allowed them to maintain - and, for some firms, increase - their …