Since Friedman (1968), the traditional derivation of the accelerationist Phillips curve has related expected real wage inflation to the unemployment rate and then invoked markup pricing and adaptive expectations to generate the accelerationist price inflation equation. Blanchflower and Oswald (1994) have argued that microeconomic evidence of a low autoregression coefficient in real wage regress...

This paper studies intertemporal investment strategies under inflation risk by extending Merton’s intertemporal framework (1973) to include a stochastic price index. The stochastic price index gives rise to both real and nominal terms of valuation: agents maximize their utility of consumption in real terms while investment activities and wealth evolution are evaluated in nominal terms. We inclu...

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O ne of the goals of macroeconomics is to explain the aggregate sources of changes in goods' prices. If there was a single consumption good in the world, as is often assumed in models, describing the price changes of consumption would be a trivial matter. But, in reality, there are many goods and prices, and there is an important distinction between price changes that are equiproportional acros...

This paper compares sticky-price and sticky-information Phillips curves empirically considering inflation dynamics in eleven countries (the G7 and Scandinavia). We evaluate the models‘ abilities to match empirical second moments of inflation. Although overall model performance is similar, there is a strong systematic pattern in model performance by moment type. Sticky prices match unconditional...

health price inflation rate is different from increasing in health expenditures. health expenditures contain both quantity and prices but inflation rate contains prices. this study aimed to determine the factors that affect the inflation rate for health care services (ircpihc) in iran.we used central bank of iran data. we estimated the relationship between the inflation rate and its determinant...

We develop a theory of money and credit as competing payment instruments, then put it to work in applications. Buyers can use cash or credit, with the former (latter) subject to the inflation tax (transaction costs). Frictions making the choice of payment method interesting also imply equilibrium price dispersion, and together these deliver closed-form solutions for money demand. The model can ...

In this paper the long-run trend in CPI inflation (core inflation) for the US over the 1960– 2000 period is estimated using a common trends model. In this framework, core inflation is interpreted and constructed as the long-run forecast of inflation conditional on the information contained in nominal money growth, output fluctuations and movements in the oil price. Unlike other commonly used me...

A propitiously timed household survey carried out in Mozambique over the period 2008/2009 permits us to study the relationship between shifts in food prices and child nutrition status in a low income setting. We focus on weight-for-height and weight-for-age in different survey quarters characterized by very different food price inflation rates. Using propensity score matching techniques, we fin...

This paper examines alternative statistically-based measures of core inflation in Ireland over the period 1976-1999. A highly disaggregated (approximately 500 price series) dataset from the Irish HICP is used. The distribution of quarterly price changes is shown, in common with other international studies, to be highly kurtotic (i.e., fat-tailed) and right skewed. This would suggest there is co...