We develop an asset-pricing model with endogenous corporate policies that explains how inflation jointly impacts real … when inflation falls. An increase in inflation has opposite effects, but with smaller magnitudes. In the cross section, the … model predicts the negative impact of inflation on real equity values is stronger for low leverage firms. We find empirical …

We examine partisan bias in inflation expectations. Our dataset includes inflation expectations of the New York Fed …'s Survey of Consumer Expectations over the period June 2013 to June 2018. The results show that inflation expectations were 0 …. Compared to inflation expectations in Democratic-dominated states, inflation expectations in Republican-dominated states …

experiment of the past decade, stemming from a belief of the government that higher interest rates cause higher inflation … eventually a negative coefficient on inflation in the policy rule. In such an environment, was the exchange rate still a random … walk? Was inflation anchored? Does the “standard model” suffice to explain the broad contours of macroeconomic outcomes in …

is shown that the firm's optimal adjustment strategy may involve stockouts. At low inflation rates, output is inversely … related to the inflation rate, and the length of time demand is satisfied increases with the demand elasticity but decreases …

seigniorage finance. This leads to an increase in inflation which, in turn, reduces capital accumulation and growth. At the …

This paper reviews the literature on the effects of low steady-state inflation on wage formation, focusing on four … different effects. First, under low inflation, downward nominal wage rigidity (DNWR) may prevent real wage cuts that would have … happened had inflation been higher. Second, wages (and prices) are given in nominal contracts, and inflation affects both how …

This paper employs a stylized New Keynesian DSGE model for a monetary union to analyze whether cyclical inflation … the fraction of borrowers and to a lesser extent the loan-to-value ratio - generate inflation differentials that are … characteristics of financial markets should be seen as a possible alternative explanation for the observable inflation dispersion in …

restrictions which are not rejected by the data - the cost channel helps to generate an initial rise of inflation after a monetary …

, Italy and the UK). The empirical results suggest that inflation in France and Italy is nonstationary. However, while for the … exclusively from the long-run or zero frequency. In the UK, inflation seems to be stationary with a component of long memory at …