This paper offers a reappraisal of the inflation-unemployment tradeoff, based on "frictional growth" describing the … able to work themselves out fully. In this context, monetary shocks have a gradual and delayed effect on inflation, and … these shocks also generate plausible impulse-responses for unemployment. Although our theory contains no money illusion, no …

reaction theory (CRT), should be used to jointly explain the evolution of inflation and unemployment. A further attraction of …The conventional wisdom that inflation and unemployment are unrelated in the long-run implies the compartmentalisation … of macroeconomics. While one branch of the literature models inflation dynamics and estimates the unemployment rate …

"The conventional wisdom that inflation and unemployment are unrelated in the long-run implies that these phenomena can … be analysed by separate branches of economics. The macro literature tries to explain inflation dynamics and estimates the … long-run and that it cannot generate substantial inflation persistence relies on the implausible assumption of a zero …

reaction theory (CRT), should be used to jointly explain the evolution of inflation and unemployment. A further attraction of …The conventional wisdom that inflation and unemployment are unrelated in the long-run implies the compartmentalisation … of macroeconomics. While one branch of the literature models inflation dynamics and estimates the unemployment rate …

hyperbolic discounting leads to inflation having significant long-run effects on real variables. …

hyperbolic discounting leads to inflation having significant long-run effects on real variables. …