Showing 1 - 10 of 342
the adoption of inflation targeting. However, the recent financial crisis and the call for central banks to focus more on …
Persistent link: https://www.econbiz.de/10011079872
their role in influencing the credibility of the monetary authority. We focus on measures of inflation expectations, the … mean reversion properties of inflation, and indicators of exchange rate risk. In addition we place some emphasis on whether …
Persistent link: https://www.econbiz.de/10011119808
-price changes, and an index of equiproportional changes in all inflation rates, that we label "pure" inflation. The paper estimates … changes to fundamental economic shocks. We use the estimates of the pure inflation and aggregate relative-price components to … answer two questions. First, what share of the variability of inflation is associated with each component, and how are they …
Persistent link: https://www.econbiz.de/10005037711
This paper investigates forecasts of U.S. inflation at the 12-month horizon. The starting point is the conventional … unemployment rate Phillips curve, which is examined in a simulated out of sample forecasting framework. Inflation forecasts …
Persistent link: https://www.econbiz.de/10005720740
In this paper, we quantify the changes in the relationship between international forces and many key US macroeconomic variables over the 1984-2005 period, and analyze changes in the monetary policy transmission mechanism. We do so by estimating a Factor-Augmented VAR on a large set of US and...
Persistent link: https://www.econbiz.de/10005050455
I present a generalization of the standard (full-information) model of state- dependent pricing in which decisions about when to review a firm's existing price must be made on the basis of imprecise awareness of current market conditions. The imperfect information is endogenized using a variant...
Persistent link: https://www.econbiz.de/10004969355
What accounts for inflation after 2008? We use the prominent pre-crisis Smets-Wouters (2007) model to address this … question. We find that due to price markup shocks alone inflation would have been 1% higher than observed and 0.5% higher that … responsible for the slow recovery of employment, though not for the initial drop. Monetary policy shocks predict an inflation rate …
Persistent link: https://www.econbiz.de/10011096565
interest on reserves. While their effects on output and inflation are small, these policies require major adjustments in the …
Persistent link: https://www.econbiz.de/10011262796
We use detailed micro data to document a causal response of local retail price to changes in house prices, with elasticities of 15%-20% across housing booms and busts. Notably, these price responses are largest in zip codes with many homeowners, and non-existent in zip codes with mostly renters....
Persistent link: https://www.econbiz.de/10011269065
We show that policy uncertainty about how the rising public debt will be stabilized empirically accounts for the lack of deflation in the US economy during the zero-lower-bound period. Announcing fiscal austerity is detrimental in the short run, but it preserves macroeconomic stability. On the...
Persistent link: https://www.econbiz.de/10011269066