This paper shows that the effect of inflation on asset prices and real aggregates depends on the financial … inflation lead to a wealth transfer across sectors. Higher inflation decreases firms' real liabilities and default risk, which … theoretically that the ultimate effect of inflation depends on the tightness of financing constraints in the intermediation sector …

choose a path for the inflation rate that ends with a non-zero value. Such a property is relevant in a wide range of … youth structure. In this setting, profit flows are discounted more heavily than utility flows and the optimal inflation … long-run inflation rate in models with firm entry and exit and in environments with search and matching frictions in the …