Using quarterly data from 1970-1987 we estimate a simple econometric model in which inflation and the money supply are … jointly determined and in which expectations of inflation are rational, or forward-looking. The model is estimated using the … recently developed `cointegration' principle in econometrics. The main findings are that Israeli inflation reflected monetary …

consequences of cuts in public spending for the rate of inflation. Monetary financing is viewed as the residual financing mode … in public consumption spending will lower the inflation rate in the revenue-efficient region of the seigniorage Laffer … curve. When there are cuts in public sector capital formation, the inflation rate can rise even in the seigniorage …

smoothness, stability, and forecasting) for core inflation, we turn to the discussion of real-time diagnosis for a low inflation … inflation through the identification of turning points and structural shocks. After establishing the sought-after properties (of … environment. This is done in the context of weekly estimates of Swiss inflation. The intra-monthly estimates for core inflation …

inflation and a permanent reduction in the level of unemployment. In short, we derive a microfounded long-run downward …

precommit. This implies that a variation of the policy maker's degree of inflation aversion does not have a systematic effect on … maker's inflation aversion may have a systematic effect on equilibrium employment even if agents have rational expectations …

The Paper presents a model in which the exogenous money supply causes changes in the inflation rate and the output … growth rate. While inflation and growth rate changes occur simultaneously, the inflation acts as a tax on the return to human … the income velocity of money that can break the otherwise stable relation between money, inflation, and output growth …

It is often argued that the EMS is an effective disciplinary device for inflation-prone countries in the EEC, since it …-makers in high-inflation countries: the reason is that not only it attaches an extra penalty to inflation (in terms of … inflationary finance, we find that they will always prefer EMS membership. When the policy-maker needs revenue from the inflation …