Price stability is an important goal of public policy. To reach this goal, two key questions must be addressed: How can price stability be achieved? And, how much price stability is desirable? The authors review the fiscal theory of the price level, with special emphasis on its implications for...

A review of research on the relationship between inventory investment and business cycle fluctuations, focusing on the developments of the last 15 years. A central issue in the literature, the relative importance of demand and supply shocks as sources of fluctuations, continues to be debated.

The author presents a model of job search that focuses on an unemployed person's decision to accept an offered job or to continue looking for a new one.

A comparison of U.S. saving rates with those of 15 OECD countries, finding that saving is generally higher in countries that do not subsidize borrowing through interest deductibility.

A summary of the fifth in a series of symposiums sponsored by the Federal Reserve Bank of Cleveland. The September 1994 meeting was dedicated to monetary policy issues and included examinations of the macroeconomic effects of price rigidity and sluggish savings decisions by households, the...

An argument that attempting to alleviate the burden of unemployment on the less affluent through expansionary monetary policy may hurt the clientele it is supposed to serve if, ultimately, the policy leads to higher long-run rates of inflation.

A comparison of a simple two-bracket income tax code with an approximation to traditional structures that entail steeply rising marginal tax rates, showing that the simpler rate structures are not necessarily more efficient than alternatives with many, highly progressive brackets.

An argument that raising federal revenues through suspending indexation of the personal income-tax code is inefficient in that it is inferior to direct increases in marginal tax rates.

Methods currently used to calculate capital consumption, the stock of capital, and the sources of economic growth do not adequately measure the underlying growth in inputs due to technological advance. This lack affects tax policy as well as the design of programs targeting potential areas of...