found to help rationalizing the hump-shaped response of inflation, without resorting to the counterfactual assumption of …

are ‘highly complementary and mutually consistent objectives' in a flexible inflation targeting regime which ‘dictates … inflation.' (BG, 1999, p.18). This conclusion is straightforward within the variant of the NK-DSGE framework used by BG in which … asset inflation shows up as a factor ‘augmenting' the IS curve. In the present paper, we pursue a different modelling …

contracts and positive inflation. Workers with relatively low incomes experience envy, whereas those with relatively high … incomes experience guilt. The former seek to raise their income, and latter seek to reduce it. The greater the inflation rate …, a rise in the inflation rate leads workers to supply more labor over the contract period, generating a significant …

Keynesian model we show that, if households have hyperbolic discounting, small positive rates of inflation can be optimal. In … our baseline calibration, the optimal rate of inflation is 2.1% and remains positive across a wide range of calibrations …

national business cycles which, in turn, leads to higher unemployment risk. In order to counter-balance this effect, trade …

In this paper we analyse the short- and long-run relationship between employment growth, inflation and output growth in … growth, inflation and output growth with bidirectional causality between employment growth and inflation as well as output … growth, giving support to Phillips' Golden Triangle theory …

This study analyses the impact of economic catching-up on annual inflation rates in the European Union with a special … Balassa-Samuelson effect is not an important driver of inflation rates. By contrast, we find that the initial price level and … regulated prices strongly affect inflation outcomes in a nonlinear manner and that the extension of Engel's Law may hold during …

We investigate how individual risk preferences affect the likelihood of selecting the more able contestant within a two …-player Tullock contest. Our theoretical model yields two main predictions: First, an increase in the risk aversion of a player … less able but less risk averse contestant can achieve an equal or even higher probability of winning than a more able but …

empirically show two main findings: first, risk-taking is positively related to the length of tax loss periods because the loss … rules shift some risk to the government; and second, the tax rate has a positive effect on risk-taking for firms that expect …