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 …

, we demonstrate that effort dampens the response of inflation to exogenous shocks. …

Low and stable inflation requires an appropriate fiscal framework aimed at stabilizing government debt. Historically …, trend inflation is critically influenced by actual or perceived changes to this framework, while cost-push shocks only … account for short-lasting movements in inflation. Before the pandemic, a moderate level of fiscal inflation has counteracted …

show that as central bank credibility falls, they are more likely to adopt either an inflation target or a pegged exchange … rate. A relatively closed economy would adopt an inflation target to overcome the time-inconsistency problem, but a highly …

show that as central bank credibility falls, they are more likely to adopt either an inflation target or a pegged exchange … rate. A relatively closed economy would adopt an inflation target to overcome the time-inconsistency problem, but a highly …