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the changing nature of inflation risk in nominal Treasuries. …We propose a no-arbitrage model that jointly explains the dynamics of consumer prices as well as the nominal and real … term structures of risk-free rates. In our framework, distinct core, food, and energy price series combine into a measure …
Persistent link: https://www.econbiz.de/10011093790
While high uncertainty is an inherent implication of the economy entering the zero lower bound, deflation is not, because agents are likely to be uncertain about the way policymakers will deal with the large stock of debt arising from a severe recession. We draw this conclusion based on a...
Persistent link: https://www.econbiz.de/10011099907
"Why is inflation persistently high in some periods and low in others? The reason may be absence of commitment in monetary policy. In a standard model, absence of commitment leads to multiple equilibria, or expectation traps, even without trigger strategies. In these traps, expectations of high...
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estimation of our model challenging, because we cannot observe the inputs into her decision process. Nevertheless, we are able to …
Persistent link: https://www.econbiz.de/10001915437
"This paper empirically examines the effects of market size on producers' sizes in retail trade industries with many producers. A robust prediction of oligopoly theory is that larger markets are more competitive and have lower price-cost markups. Because producers in more competitive markets...
Persistent link: https://www.econbiz.de/10001915478
"We calibrate a model of labor demand to infer the employment responseto a change in the minimum wage in the food away from home industry. Assuming a perfectly competi- tive labor market, the model predicts a 2.5 to 3.5 percent fall in employment in response to a 10 percent minimum wage change....
Persistent link: https://www.econbiz.de/10001920665