What Are the Costs of Permanently High Inflation?

We discuss the economic costs of a permanently high inflation rate. Economic theory suggests that inflation affects economic outcomes along a number of channels. We evaluate the quantitatitve importance of these channels and the empirical evidence that exists in their support. Papers mentioned in the podcast: Nakamura & Steinsson (Quarterly Journal of Economics, 2018), The Elusive Costs of Inflation: Price Dispersion During the Great U.S. Inflation, https://doi.org/10.1093/qje/qjy017 Adam et al. (Journal of Monetary Economics, forthcoming), The case for a positive Euro Area inflation rate: evidence from France, Germany and Italy, https://jimdo-storage.global.ssl.fastly.net/file/3eb2213a-50d0-47b7-88be-93858a266cb9/AdamGautierSantoroWeber_JME.pdf Guido Ascari (2022, unpublished), The Long-Run Phillips Curve Is ...a Curve, https://sites.google.com/site/guidoascari/working-papers?authuser=0