the traditional results on the impact of inflation. In particular, recent findings suggest that quantity-adjustment costs … may remove the linkage between output and inflation. We show that this is not the case when inflation is anticipated. On …

-form solution for a long-run Phillips curve which relates average output gap to average wage inflation: it is virtually vertical at … high inflation and flattens at low inflation. Macroeconomic volatility shifts the curve outward and reduces output. The … results imply that stabilization policies play an important role, and that optimal inflation may be positive and differ across …

This paper examines the shift in the relation between the inflation rate and the rate of growth of real output which … possible lines of explanation: a) the new classical view of the output-inflation tradeoff, initially specified by Lucas;b) the … effect of supply-side shocks, such as energy prices; c) the effect of inflation variability on the natural rate of real …

-run Phillips curve which relates average output gap to average wage inflation: it is virtually vertical at high inflation and … flattens at low inflation. Macroeconomic volatility shifts the curve outward and reduces output. The results imply that … stabilization policies play an important role, and that optimal inflation may be positive and differ across countries with different …