This paper studies the effects of key underlying macroeconomic variables on the trend inflation rate in the USA. To do so, we consider eight structural shocks that incorporate a broad set of information for the US economy and that can be regarded as the main structural determinants of the...

We propose an unobserved components model with stochastic volatility and structural shocks to explore the relevant factors that influence trend inflation in the USA. Using structural shocks that incorporate a broad set of information for the US economy, we find that four structural shocks have...

This paper examines the effect of inflation on effort and productivity in a representative agent model. We allow individual effort to be a continuous choice variable, which affects utility negatively and output positively. Our general model shows that the effect of inflation on effort, and hence...

This paper investigates whether monetary and fiscal policies, such as lump-sum taxes and monetization of pubic deficit, have environmental impacts. We address this question extending the neoclassical monetary growth model. We include a state equation for natural resources, and consider natural...

This paper analyses the determinants of inflation in Albania during the transition period. We attempt to explain how albania has been so successful in reducing inflation to a level comparable to many countries in the European Union. We discuss the relative importance of monetary, fiscal, and...

Recent literature has argued that exchange rate pass-through (ERPT) into domestic inflation has been declining in many countries following a dramatic change in inflation environment during the 1990s. Available empirical results face two central challenges: (i) the evidence on declining ERPT is...