Inflation Interdependence in Advanced Economies

Non-Linear Dynamics of Inflation in High Inflation Economies

Attempts by governments to finance a substantial proportion of expenditure by seigniorage can lead to multiple inflationary equilibria. Theoretical models suggest that, in these circumstances, inflation follows a non-linear process with up to three steady states and that the stability characteristics of these depend on the process by which expectations are formed. In this paper we show that the...

Is Inflation Persistence Intrinsic in Industrial Economies?

Abstract: Many empirical studies have indicated that inflation exhibits very high persistence throughout the post-war period in nearly every industrial economy. In this paper we challenge this conventional wisdom and instead argue that in many cases, high inflation persistence is an artifact of empirical techniques that fail to account for occasional shifts in the monetary policy regime. In par...

Monetary Models and Inflation Targeting in Emerging Market Economies

The optimality of inflation in ‘pure currency’ economies: a conjecture

The term pure currency means an economy of people whose histories are private and who, therefore, cannot be punished individually in the future for current actions. In many economies of that kind, any trade requires the use of outside money and taxation is not feasible. The conjecture is for economies of that kind in which there are extensive margins that play a role. For such economies, the co...

Self-Employment Dynamics in Advanced Economies

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