This paper revisits the equilibrium and welfare effects of long-run inflation in the presence of distortionary taxes … and financial constraints. Expected inflation interacts with corporate taxation through the deductibility of i) capital … expenditures at historical value and ii) interest payments on debt. Through the first channel, inflation increases firms' taxable …

Iceland was a high inflation country from the second half of the seventies and until the middle of the eighties. During … the middle of the nineties inflation in Iceland, at less than 2% p.a., was among the lowest in the OECD. In this paper we … analyse the roots of high inflation in Iceland and the subsequent disinflation episode. We find that high inflation in Iceland …

The remarkable stability of low domestic inflation in many countries requires explanation. In this paper, a number of … continuing low inflation, but also its coexistence with rapid growth and low real interest rates. Unfortunately, the analysis … also leads to the conclusion that rising inflation, unwinding financial imbalances, or both, could easily follow the …

There has been mounting evidence that the inflation process has been changing. Inflation is now much lower and much … more effective. There is no doubt in our mind that this explanation goes a long way towards explaining the better inflation …. We argue that prevailing models of inflation are too country-centric, in the sense that they fail to take sufficient …

This paper aims to explain differences in inflation between six central European economies - Croatia, the Czech … productivity differentials explain on average only between 0.2 and 2.0 percentage points of annual inflation differentials vis …-a-vis the euro area. Productivity differentials also explain only a small proportion of domestic inflation in central European …

inflation. We exploit cross-country variation in a long panel to identify age structure effects in inflation, controlling for … increases. This relationship accounts for the bulk of trend inflation, for instance, about 7 percentage points of US … disinflation since the 1980s. It predicts rising inflation over the coming decades …

We study how domestic and global output gaps affect CPI inflation. We use a New Keynesian Phillips curve framework …Q1-2017Q4 period. We find broadly that both global and domestic output gaps are significant drivers of inflation both in … output gaps on inflation …

shocks on wages and inflation but heighten the impact of technology shocks. Informality also increases the sacrifice ratio of … inflation volatility for some type of shocks but makes monetary policy less effective …

inflation to the forefront of policy concerns. Those concerns will only grow as aging populations increase demands on government … fiscal deficits directly affect inflation. The paper begins by pointing out similarities and differences between the Weimar … inflation and explains why these fiscal effects are difficult to detect in time series data …