permanent shifts of the exchange rate and the price level if a central bank anchors long-run inflation expectations. In line …-run price level target rather than a long-run inflation target avoids these permanent shifts of the exchange rate and the price …

-run inflation rate is positive and between 0.5% and 1.5% per year. A positive long-run inflation rate helps the fast-growing new … without learning-by-doing in new firms predicts an optimal long-run inflation rate near zero. In a two-sector model with …

A constant price level facilitates cooperation among firms whereas steady inflation and deflation rates lower firms …' ability to cooperate. In an experimental market with price competition we show that both inflation and deflation signicantly … welfare: depending on the market structure, inflation and deflation lead to significantly lower real prices and higher welfare. …

developed here to test for unit roots in OECD panels of gross domestic products and inflation rates, yielding inference robust … to the `Great Moderation.' We find little evidence of trend stationarity, and mixed evidence regarding inflation …