The authors apply a Hidden Markov Model to identify regimes of shifting inflation and then employ an attribution … technique based on the Mahalanobis distance to identify the economic variables that determine the trajectory of inflation. Their … analysis enables policymakers to focus on the most effective tools to manage inflation, and it offers guidance to investors …

supply, interest rate (IR), and exchange rate (EXR) in India during the pre-economic crisis and economic crisis periods … short-run bidirectional causality between money supply and EXR, IR and price level, and IR and output in India during the …

hyperbolic discounting leads to inflation having significant long-run effects on real variables. …

A growing body of empirical evidence shows that there exists a long-run positive tradeoff between inflation and real … between inflation and output. …

The present paper explores the connection between inflation and unemployment in different models with fair wages both … function, more inflation lowers the unemployment rate, though to a declining extent. This is because firms respond to inflation … inflation on effort. A stronger effect of nflation on unemployment is also produced under varying as opposed to fixed capital …

This paper studies the welfare costs and the redistributive effects of inflation in the presence of idiosyncratic … money demand and the distribution of money holdings across households, and study the effects of inflation under the implied … inflation are on average 40% smaller compared to a complete markets, representative agent economy, and that inflation induces …

interaction affects the allocation and welfare. Regarding how banking affects the welfare costs of inflation: First, we find that …, with banking, inflation generates smaller welfare costs. Second, we show that, lowering inflation improves welfare not just … nature of intermediation cost is critical for accurately assessing the welfare gain of lowering the inflation target …