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  • How Much Inflation is Necessary to Grease the Wheels? 

    Kim, Jinill; Ruge-Murcia, Francisco (Université de Montréal. Département de sciences économiques., 2007)
    This paper studies Tobin's proposition that inflation "greases" the wheels of the labor market. The analysis is carried out using a simple dynamic stochastic general equilibrium model with asymmetric wage adjustment costs. Optimal inflation is determined ...