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[...]This article explores the inflation puzzle andinvestigates whether compensation has acted as either atemporary restraint on inflation or as the underlying sourceof a new inflation regime.2 After reviewing the recent behavior of inflation, we specify and estimate a traditionalprice-inflation...
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This paper considers the determination of aggregate price level under dispersed information.A Central Bank sets policy …. Information revealed to theagents and the bank is determined endogenously. It is shown that the aggregate state ofthe economy is … representative agent has perfect informationwhile the Bank has partial information. The Bank’s information set affects fluctuations …
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The 1990s were characterized by substantial financial sectorconsolidation across a large number of industrializedcountries...
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, centralbanks have made extensive use of both new and existing toolsfor supplying central bank money to financial institutions …
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),1 which leads to “fire-sale”–related pecuniaryexternalities; and bank interconnectedness (Allen and Gale2000; Kahn and Santos …
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bankingindustry. This goal is served by taking a broad view of thepayments business and analyzing information provided bylarge bank …
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