Recent empirical studies on the inflation-growth-relationship underline that inflation has negative growth effects … influence of inflation on factor substitution. It turns out that already in a simple neoclassical monetary growth model this … potential positive effects of inflation along the convergence path. In a more general perspective the paper contributes to a …

The New Keynesian Phillips Curve (NKPC), driven by unit labor costs has been criticized for failing to match inflation … the fit of the NKPC, by introducing a fuller marginal cost proxy, "unit total costs", that is derived from both labor and … non-labor unit costs; the latter includes capital-related costs and production taxes. Borrowing costs are examined …