Narrow search
Showing 1 - 10 of 852
Cover Image
Relative-Price Changes as Aggregate Supply Shocks Revisited : Theory and Evidence
Afrouzi, Hassan; Bhattarai, Saroj; Wu, Edson - National Bureau of Economic Research - 2024
We provide theory and evidence that relative price shocks can cause aggregate inflation and act as aggregate supply … on U.S. core inflation while depressing U.S. real activity. In a two-sector monetary model with upstream and downstream … predictions. Motivated by post-COVID inflation in the U.S., a model experiment shows that a one-time relative price shock …
Persistent link: https://www.econbiz.de/10015056141
Cover Image
Product Prices and the OECD Cycle
Kraay, Aart - 2000
It is well known that business cycles in OECD countries exhibit a remarkable degree of synchronization. Much less known is that the peak of the OECD cycle is associated with high prices of labour-intensive products and low prices of capital-intensive ones. We document this cyclical behavior of...
Persistent link: https://www.econbiz.de/10012470962
Cover Image
Openness, Relative Prices and Macro Policies
Aizenman, Joshua - 1983
This paper analyzes the role of relative prices in the conduct of wage indexation and monetary policy in a small economy producing traded and non-traded goods under a flexible exchange rate regime. It is shown that the beneficial effect of using relative prices in addition to aggregate prices as...
Persistent link: https://www.econbiz.de/10012477864
Cover Image
Inflexible Relative Prices and Price Level Inertia
Blanchard, Olivier J. - 1983
A decrease in aggregate demand at given prices and wages decreases output and employment. The decrease in employment exerts downward pressure on real wages. The decrease in production exerts downward pressure on markups. With perfectly synchronized price and wage decisions, nominal wages and...
Persistent link: https://www.econbiz.de/10012477954
Cover Image
Estimated Effects of Relative Prices on Trade Shares
Fair, Ray C. - 1981
Estimated effects of relative prices on trade shares are presented in this paper for 64 countries. The equations are estimated using pooled time series, cross section data under the assumption that the error term is serially correlated across time and heteroskedastic across countries. The...
Persistent link: https://www.econbiz.de/10012478422
Cover Image
Money and the Dispersion of Relative Prices
Hercowitz, Zvi - 1980
A price dispersion equation is tested with data from the German hyper-inflation. The equation is derived from a version …
Persistent link: https://www.econbiz.de/10012478714
Cover Image
Business Cycles With A Common Trend in Neutral and Investment-Specific Productivity
Schmitt-Grohé, Stephanie - 2010
This paper identifies a new source of business-cycle fluctuations. Namely, a common stochastic trend in neutral and investment-specific productivity. We document that in U.S. postwar quarterly data total factor productivity (TFP) and the relative price of investment are cointegrated. We show...
Persistent link: https://www.econbiz.de/10012462583
Cover Image
Real Exchange Rate Movements and the Relative Price of Non-traded Goods
Betts, Caroline M. - 2008
small. The relation does not change for rich/poor country bilateral pairs or for high inflation/low inflation country pairs …
Persistent link: https://www.econbiz.de/10012464210
Cover Image
Can IT be Japan's Savior?
Hayashi, Fumio - 2005
This paper constructs a multi-sector model to take explicit account of the very sharp change in the relative price between non-IT and IT goods. The model is calibrated to the Japanese economy, and its solution path from 1990 on is compared to Japan's macroeconomic performance in the 1990s....
Persistent link: https://www.econbiz.de/10012466923
Cover Image
Relative Price Volatility Under Sudden Stops : The Relevance of Balance Sheet Effects
Calvo, Guillermo A. - 2005
Sudden Stops are associated with increased volatility in relative prices. We introduce a model based on information acquisition to rationalize this increased volatility. An empirical analysis of the conditional variance of the wholesale price to consumer price ratio using panel ARCH techniques...
Persistent link: https://www.econbiz.de/10012467184