What shocks account for the business cycle frequency and long run movements of output and prices? This paper addresses … supply affect output in the long run. Real and monetary aggregate demand shocks can affect output, but only in the short run … and their effect on output and price at all frequencies. Aggregate demand shocks account for about twenty to thirty …

constraints generate inflation. We study stochastic economies with fiat money, a central bank, one nondurable commodity, countably … and a fixed price for the commodity. Consequently, we investigate stationary equilibria with inflation, in which aggregate … equation for the rate of inflation continues to hold and the real rate of interest is equal to the common discount rate of the …

The world is first known inflation-indexed bonds were issued by the Commonwealth of Massachusetts in 1780 during the … Revolutionary War. These bonds were invented to deal with severe wartime inflation and with angry discontent among soldiers in the U …

Irving Fisher long advocated inflation indexed bonds. I prove in the context of a multicommodity CAPM world that the …