view of inflation. Second, we discuss how the recent inflationary episode has contributed to redistributing real resources …

, shifted the inflation barrier to higher rates of unemployment in the 1970s. Subsequently, the decrease in trade union power … has reversed this shift such that at the end of the period, in 2003:3, the inflation barrier is at a rate of unemployment …

Robust GDP growth, declining unemployment, low and stable inflation, and a string of fiscal and current account …

the inflation tax. Accordingly, continued effort is likely to be needed to attain a fiscal position that is sustainable …

3 percent. Recent indicators suggest that activity has continued to strengthen in 2004. During 2003, inflation … inflation. IMF staff projects that the economic recovery will gain momentum with GNP growth of 4½ percent in 2004, accelerating … slightly to 5 percent in 2005. Core inflation is forecast to stay close to 2 percent. …

presents an econome tric analysis of deflation and its determinants. Section VI examines the factors behind, and the …