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This paper analyses the role of inflation expectations in the euro area. On one hand, the question is how inflation expectations affect both inflation and output, and, on the other hand, how inflation expectations reflect developments in these variables. The analyses make use of a simple VAR...
Persistent link: https://www.econbiz.de/10005126316
This paper shows the way how persistent world inflation shocks hitting a small open economy can re-weight the importance of domestic and foreign factors in the determination of prices. In this sense, we study why the recently observed global disinflation environment may imply a weakening of the...
Persistent link: https://www.econbiz.de/10005412737
countries. According to the results, inflation expectations are central to the inflation process in all euro area countries. The …
Persistent link: https://www.econbiz.de/10005126170
further show that the level of inflation premium might be potentially large even when a central bank implements an active …
Persistent link: https://www.econbiz.de/10005126223
This paper presents an estimated model with learning and provides evidence that learning can improve the fit of popular monetary DSGE models and endogenously generate realistic levels of persistence. The paper starts with an agnostic view, developing a model that nests learning and some of the...
Persistent link: https://www.econbiz.de/10005561139
Persistent link: https://www.econbiz.de/10005561164
During the decade of the 1970’s the US economy unexpectedly suffered from “stagflation” namely, high unemployment, slowed economic growth and high rates of inflation. During the 1980’s the major macroeconomic problem became high interest rates and massive government deficits....
Persistent link: https://www.econbiz.de/10005561172
Some economists have argued that the process of disintegration of the world economy between the two World Wars led to income divergence between the countries. This is in keeping with the view that economic integration leads to income convergence. The paper shows that the view that the period...
Persistent link: https://www.econbiz.de/10005076560
Using panel regression for the period 1970-2000 the paper analyzes whether globalization has influenced the OECD … endogeneity of the regressors, the results show that globalization (measured by an index covering 23 variables) did not generally … decrease the leeway for independent economic policy. Globalization even increased implicit tax rates on capital (as calculated …
Persistent link: https://www.econbiz.de/10005076616
. Our three-fold empirical understanding of the process of globalization – reliance on foreign savings, MNC penetration and …
Persistent link: https://www.econbiz.de/10005125619