The paper adresses several issues pertaining to the problem of monetary policy, inflation measurement, and relative prices. After some preliminary empirical analysis showing that the problem must be relevant we set out to conduct a mainly theoretical investigation. If the per period utility...

The traditional CPI measure has many drawbacks, when used for very different purposes, and it is not at all surprising that a great deal of work has been devoted to its improvement. Besides seasonal adjustment, various other techniques have been developed to find the “core” inflation index....

This paper studies five different aspects of inflation. Undoubtedly, there are manifold requirements made on the consumer price index. It is designed to measure changes in the cost of living and the cost of holding money, to serve as the basis for calculating real interest rate and real exchange...

Financial vulnerability has become a much-studied topic in recent years. The Mexican crisis of 1994-95 reinvigorated interest in developing country capital market crises, and the 1997 events originating in East Asia widened the range of possible causes and mechanism. Then the Russian crisis of...

In this study enterprise leverage in Hungary is analysed with particular emphasis on the relationship between foreign equity investment and leverage. We examine the hypothesis according to which attracting foreign equity capital relatively early in the transition process might have resulted in...

This paper makes an attempt to distinguish between financial structures and monetary policies that have the potential to amplify real disturbances, and thereby to lead to crises par excellence, and those where fluctuations have risk sharing features, and do not aggravate real shocks. After...