I study the effects of inflation on the purchasing behavior of buyers in an economy where money is essential for … certain transactions (as in Lagos and Wright, 2005). A long-standing intuition in this subject is that when inflation … environment, I show that higher inflation induces some buyers to spend their money faster by frontloading their consumption …

We argue that long-run inflation has nonlinear and state-dependent effects on unemployment, output, and welfare. Using … anticipated inflation and unemployment. Second, there is also a positive correlation between anticipated inflation and … unemployment volatility. Third, the long-run inflation-unemployment relationship is not only positive, but also stronger when …