Abstract. I derive a theory of endogenous uncertainty and attention choice that can jointly account for two recent … phenomena: (i) the flattening Phillips Curve and (ii) “well-anchored” inflation. In particular, I derive a Behavioral Attention … Phillips Curve (BAPC) whose slopes on the output gap and inflation expectations decline when inflation is less uncertain. When …

and inflation, as outlined in the classical study by M. Friedman and Schwartz, mostly disappeared since the early 1980s … information about future movements of US real output and inflation. Statistical evidence here provided thus suggests that the …

This paper offers a reappraisal of the inflation-unemployment tradeoff, based on "frictional growth", describing the … these shocks also generate plausible impulse-responses for unemployment. Although our theory contains no money illusion, no … permanent nominal rigidities, and no departure from rational expectations, there is a long-run inflation-unemployment tradeoff …

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 …

substantial fraction of the cyclical variation in output and is consistent with the observed inertia in inflation. This is true …

inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after …

intertemporal coordination, and lead to malinvestments in human capital. By extending the Austrian theory in this manner, I hope to …

economics from those working in the Austrian tradition. Then, we offer a sketch of the Austrian theory of labor markets and …

capital and use the resulting model to discuss the concept of the ‘non-accelerating inflation rate of unemployment’. We then …We propose a monetary model in which the unemployed satisfy the official US definition of unemployment: they are people ….e., unemployment is ‘involuntary’). We integrate our model of involuntary unemployment into the simple New Keynesian framework with no …