Motivated by policy statements of central bankers, we propose to regard the central banker as a risk manager who aims … at containing inflation and the deviation of output from potential within pre-specified bounds. We develop formal tools … of risk management that may be used to quantify the risks of failing to attain that objective. Risk measures inherently …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation … within pre-specified bounds. We develop formal tools of risk management that may be used to quantify and forecast the risks … of failing to attain that objective. We illustrate the use of these risk measures in practice. First, we show how to …

for the pricing of risk includes homeownership rates) and in spatial economics (e.g. hedging considerations and the … problem. Within spatial economics, we identify the consequences of hedging motives for location decisions. We characterize a … pricing of risk affect the geographic allocation of human capital). …

capture the proxy effect and risk premia — and an implied mispricing. We find that inflation and nominal interest rates …A reduction in inflation can fuel run-ups in housing prices if people suffer from money illusion. For example … account that inflation lowers future real mortgage costs. We decompose the price-rent ratio in a rational component — meant to …

and bonds for US investors. Risk averse investors that hold residential real estate for investment purposes have future … relative demand for either is not significantly affected by home ownership. For less risk averse agents the price return on …