Developing country inflation is in the headlines again. Mainstream macroeconomics typically ignores the role of … monetary sources of inflation in the presence of real wage resistance and distributional conflict. The analysis shows that the … relatively small shock leads to sustained and accelerating inflation and a wage-price spiral, thanks to conflicting claims on …

inflation - is a central determinant of welfare, the cost of business cycles, the optimal rate of inflation, and the tradeoff … between inflation and output stability. While the comovement of price dispersion and inflation implied by standard models is … the data, the comovement of price dispersion and inflation turns positive. Nevertheless, I show that a wide variety of …

Our paper studies the relationship between money growth and consumer price inflation in the euro area using wavelet … analysis. Wavelet analysis allows to account for variations in the money growth-inflation relationship both across the … frequency spectrum and across time. We find evidence of strong comovements between money growth and inflation at low frequencies …

the cost of inflation. Our model features a strategic complementarity between the buyers' ex ante choice of money balances … inefficient and welfare-ranked. Effects of inflation are highly nonlinear. When inflation is high, the buyer's money holdings bind …, and inflation therefore reduces trade through a standard real-balance channel. When inflation is low, the seller …

We document that persistent and lagged inflation (with respect to output) is a world-wide phenomenon in that these … short-run inflation dynamics are highly synchronized across countries. In particular, the average cross-country correlation … of inflation is significantly and systematically stronger than that of output, while the cross-country correlation of …

predictions about the level of price dispersion, as well as about its dynamic properties and sensitivity to inflation. These … dispersion and inflation, and the role of sales in this relationship …

Our paper studies the relationship between money growth and consumer price inflation in the euro area using wavelet … analysis. Wavelet analysis allows to account for variations in the money growth-inflation relationship both across the … frequency spectrum and across time. We find evidence of strong comovements between money growth and inflation at low frequencies …

sunspot that deanchors inflation expectations matches the main empirical features of the Japanese deflationary process during … the “lost decade”. The results also highlight the key role of the assumption about the anchoring of inflation expectations …

This paper investigates the welfare effects of inflation in economies with search frictions and menu costs. We first … condition under which price stability is optimal and a condition under which positive inflation is desirable. We relate these … inflation rate is negative for all our numerical examples. A deviation from the Friedman rule can be optimal depending on the …