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This study employs an alternative stochastic model which offers important advantages over those proposed by Cohen and Pekelman, and Biddle and Martin. Rather than optimizing with respect to a single order-up-to level determined at the start of each year, the model permits a second order at...
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Numerous studies document a positive correlation between inflation and income inequality. I show that this correlation … period and sample of countries. In the literature on the political economy of inflation, monetary financing and income taxes … are substitutes. Correspondingly, as the correlation between inequality and inflation has become more negative, the …
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://ssrn.com/abstract=1125625.The return on investments depends on the effects of inflation. To analyze the effect of inflation, we shall use a case … different inflation rates. The problem of inflation and its consequences is expressed very clearly. And its solution is very … simple. When inflation is high, company earnings are artificially high (i.e., not caused by an improvement in the company …
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This paper proposes a new method to measure the impact of inflation on the real value of public debt. The distribution … provide new estimates, and the distribution of risk-adjusted inflation dynamics, for which we provide a novel copula estimator … using options data. We find that it is unlikely that inflation by itself can lower the U.S. fiscal burden significantly …
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-expected inflation can lower the real value of outstanding government debt. Looking forward, we derive a formula for the debt burden that …-adjusted probability distributions for inflation at different horizons. The estimates suggest that it is unlikely that inflation will lower … the US fiscal burden significantly, and that the effect of higher inflation is modest for plausible counterfactuals. If …
Persistent link: https://www.econbiz.de/10013050141
We argue that long-run inflation has nonlinear and state-dependent effects on unemployment, output, and welfare. Using … anticipated inflation and unemployment. Second, there is also a positive correlation between anticipated inflation and … unemployment volatility. Third, the long-run inflation-unemployment relationship is not only positive, but also stronger when …
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