Inflation, Stagflation, Relative Prices, and Imperfect Information

Professor Cukierman presents a summary view of the recent imperfect information approach to inflation and its real effects, focusing in particular on two types of informational limitations. The first involves situations in which individuals have asymmetric information about the current general price level and consequently confuse relative and aggregate changes in prices. The second considers models in which individuals cannot distinguish permanent from transitory changes in the economic environment. The book assumes no mathematical training beyond standard calculus and elementary statistics.Alex Cukierman is the author of 'Inflation, Stagflation, Relative Prices, and Imperfect Information', published 1984 under ISBN 9780521256308 and ISBN 0521256305.