early 1930s - fear of inflation is evident in the bond, foreign exchange, and commodity markets at certain critical …'s policies have been prepared to admit. Using a rational expectations framework, we find strong evidence from the bond market to … suggest fear of inflation. Futures prices also reveal that market participants were betting on price increases. These findings …

We examine the role of expectations in the Great Moderation episode. We derive theoretical restrictions in a New …-Keynesian model and test them using measures of expectations obtained from survey data, the Greenbook and bond markets. Expectations … explain the dynamics of inflation and of interest rates but their importance is roughly unchanged over time. Systems with and …

This paper advances a highly tractable model with search theoretic foundations for money and neoclassical growth. In … effects of inßation on capital accumulation and welfare. With realistic parameters, inflation has large negative effects on … bilateral trading, inflation depresses capital and output and has a negligible effect on welfare. …

We study the contribution of money to business cycle fluctuations in the US, the UK, Japan, and the Euro area using a … and time instabilities analyzed. Real balances are statistically important for output and inflation fluctuations. Their … contribution changes over time. Models giving money no role provide a distorted representation of the sources of cyclical …

We study the contribution of the stock of money to the macroeconomic outcomes of the 1990s in Japan using a small scale … analyzed. Real balances are statistically important for output and inflation fluctuations and their role has changed over time …. Models which give money no role give a distorted representation of the sources of cyclical fluctuations. The severe …

value of German assets and the volatility of returns on them. Instead, it was inflation (and the fear of it) that is largely …

are too low. In this environment, changes in investor sentiment or market expectations can give rise to credit bubbles …, that is, expansions in credit that are backed not by expectations of future profits (i.e. fundamental collateral), but … instead by expectations of future credit (i.e. bubbly collateral). Credit bubbles raise the availability of credit for …