1 But, structural analysis is certainly best placed to bring more evidence to the issue. And this conference offers a representative menu of last-generation results on the extent to which the Phillips curve is tilted in the “wrong direction” – more inflation being associated with less, not more, growth – and on the welfare implication of inflation in the long run.
Analyses point to potentially sizeable costs of sustained inflation, in terms of lost output and diminished consumption opportunities, even when inflation proceeds at moderate rates. This conference articulates the scope of welfare analysis at least in three directions. The first is most established.