other sources of sluggishness to explain the observed high inflation persistence. Second, we confront empirically our fair … inflation outcomes …

. Nevertheless, the price level is sticky in a range of markup indeterminacy, and inflation occurs only when employment presses … keep employment at a constrained optimum without inflation. Under uncertainty, negative aggregate demand shocks produce … demand will maximize employment, but at the cost of higher expected inflation …

. Over the same period the volatility of inflation has declined in most countries. Many previous papers argue that financial … globalisation has led to improved policy-making and lower inflation. This paper makes the case that there could be causation running … in the other direction. We present theory and empirical evidence indicating that more stable inflation leads to a …

can self-insure only with money, inflation reduces wealth inequality but may raise consumption inequality. Otherwise …The impact of fully anticipated inflation is systematically studied in heterogeneous agent economies with an endogenous … labor supply and portfolio choices. In stationary equilibrium, inflation nonlinearly alters the endogenous distributions of …

For economies in which the real rate of return on money is too low, the standard prescription is to deflate prices …

I use a microfounded model of money to quantify the redistributive effects of expected inflation in a sample of OECD … countries. In doing so, I address two quantitative issues. First, I pin down money demand rigorously, which implies accounting … considered inflation acts as a regressive tax. Second, the magnitude of such redistributive effects differs across countries and …

determination of the central bank to leave unchanged its long-term inflation objective in the face of inflationary shocks. The … magnitude of private sector learning has been calibrated to match the volatility of US inflation expectations at long horizons …. Given such illustrative calibrations, we find that the costs of maintaining a given inflation volatility under weak …

inflation is inertial. Microeconomic data indicate that firms change prices frequently. We formulate and estimate a model which … resolves this apparent micro - macro conflict. Our model is consistent with post-war U.S. evidence on inflation inertia even …

This paper studies Tobin's proposition that inflation quot;greasesquot; the wheels of the labor market. The analysis is … inflation is determined by a benevolent government that maximizes the households' welfare. The Simulated Method of Moments is … wages are downwardly rigid and that the optimal level of grease inflation for the U.S. economy is about 1.2 percent per year …

other sources of sluggishness to explain the observed high inflation persistence. Second, we confront empirically our fair … inflation outcomes …