Inflation, Stagflation, Relative Prices, and Imperfect InformationThis book surveys the imperfect information approach to inflation and its real effects. Two types of informational limitation are considered. One involves situations in which individuals have asymmetric information about the current general price level and consequently confuse relative and aggregate changes in prices. The other considers situations in which individuals cannot distinguish permanent from transitory changes as soon as they occur,
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Inflation, Stagflation, Relative Prices, and Imperfect Information