shifts in the parameters of wage equations when the process generating price inflation changes. The two major shifts that we …

with targeting the rate of inflation. Critical advances in the measurement of inflation have proved decisive in bringing …

stability. These questions are: (1) what are the economic costs of inflation? (2) what part does monetary policy play in the … short- and medium-term evolution of inflation? (3) what are the most appropriate monetary policy strategies for fighting … inflation? …

examining the relationship between inflation and unemployment, which sheds light on these developments. The theoretical section … similar inflation behaviour, in that inflation depends more closely on the capacity utilization rate than on the unemployment … high unemployment does not put downward pressure on the inflation rate. During the 1970s and 1980s in Germany, there …

corrects the average debt bias, inflation, which is attuned to the Union-average debt level, is more stable. …

distortions (and, hence, high inflation) is admitted into a monetary union once its economic structure has converged sufficiently … the union again later, convergence stops for a while after the high inflation country has joined. With irreversible …

consumption velocity very closely during the high-inflation years. …

monetary union. There is an incentive to use a surprise inflation tax to wipe out the real value of government debt and wage … monetary union with a non-cooperative or cooperative central bank. This case is stronger when the aversion to inflation is high … is little indexation. Even if all contracts are indexed, there is an incentive to create unanticipated inflation if money …

Inflation worries the general public much more than it does the economics profession, and economists remain perplexed … losses that concern the public, because inflation simultaneously transfers some of people’s income into the hands of … government gains. Admittedly the magnitude of this tax is low in developed countries like the United States, even when inflation …