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The optimal inflation rate is an outstanding issue in monetary theory and policy. Previous work attempting to … rationalize positive inflation targets chosen by central banks is subject to a major criticism, since its conclusions depend on … the assumption that only one currency is available to agents. This paper presents a model in which the inflation of the …
Persistent link: https://www.econbiz.de/10010708768
Early research work confirms that the use of the new European currency, the euro, could create an effect of money illusion: expressed in euros, perceived prices seem lower and price elasticity diminished. But it also concludes on the complexity of the relationship between prices, currency unit...
Persistent link: https://www.econbiz.de/10011166560
The arrival in France of the euro in 2002, and the withdrawal of the franc, have been anticipated within many companies in all operational areas (payroll, billing and accounting for example). As far as price policy is concerned, the company must determine, beyond the compulsory legal conversion,...
Persistent link: https://www.econbiz.de/10010905094
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helpful to forecast inflation and industrial production. Keywords: International treasury yield curves, common and local …
Persistent link: https://www.econbiz.de/10011074666
It is shown that backward-forward procedure which selects solutions in dynamic models with rational expectations may fail to give a solution when the lags are of order two.
Persistent link: https://www.econbiz.de/10010755895
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In his 1903 thesis - “Money and credit instruments in their relation to general prices” - published in 1907, E.W. Kemmerer argued that the market prices of goods cannot be determined by the equations of demand and supply of goods without introducing the “missing” equilibrium equation of...
Persistent link: https://www.econbiz.de/10011072055
There is not a single classical approach to the lender of last resort, but several classical approaches to the lender of last resort. They have been successively developed by Baring, Thornton, the Banking School, Bagehot and Hawtrey. If these approaches converge in stressing that the lender of...
Persistent link: https://www.econbiz.de/10011072643
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