Does the cross-border strategic behavior of large firms reflect national differences? There is uncertainty about the ways in which expanding markets will influence the activities of large firms and national governments. Some theorists expect market forces to produce increasing pressure for...

The conventional New Keynesian Phillips Curve (NKPC), driven by unit labor costs has been criticized for failing to match inflation dynamics and for explaining the duration of fixed price contracts. This paper extends recent attempts in the literature to find an alternative marginal cost proxy...

This paper provides comprehensive empirical evidence that supports the predictions of Sargent and Wallace's “unpleasant monetarist arithmetic” that an increase in public debt is typically inflationary in countries with large public debt. Drawing on an extensive panel data set, we find that...

This paper provides comprehensive empirical evidence that supports the predictions of Sargent and Wallace's (1981) "unpleasant monetarist arithmetic" that an increase in public debt is typically inflationary in countries with large public debt. Drawing on an extensive panel dataset, we find that...