Showing 1 - 10 of 261
. The imperfect information is endogenized using a variant of the theory of "rational inattention" proposed by Sims (1998 …
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
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
This paper examines the recent behavior of core inflation in the United States. We specify a simple Phillips curve … based on the assumptions that inflation expectations are fully anchored at the Federal Reserve’s target, and that labor …-market slack is captured by the level of short-term unemployment. This equation explains inflation behavior since 2000, including …
Persistent link: https://www.econbiz.de/10011085483
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
expectations about future inflation. Our novel experimental framework allows us to disentangle learning from different sources of … conducted with 10,000 subjects in both a low-inflation context (the United States) and a high-inflation context (Argentina). To … individuals are highly influenced by both inflation statistics and supermarket prices when forming their inflation expectations …
Persistent link: https://www.econbiz.de/10011122416
China has experienced remarkably stable growth and inflation in recent years according to official statistics. We … alternative estimates of Chinese growth and inflation. Our estimates suggest that official statistics present a smoothed version … of reality. Official inflation rose in the 2000's, but our estimates indicate that true inflation was still higher and …
Persistent link: https://www.econbiz.de/10011203049