finance statistics, and the Labour Force Survey). By incorporating adaptive learning and heuristics, we equip the model to …

-kinked demand schedule for goods produced by firms. Our model can jointly account for the modest decline in inflation during the … Great Recession and the surge in inflation post-COVID-19. Because our model implies a stronger transmission of shocks when … inflation is high, it generates conditional heteroskedasticity in inflation and inflation risk. Hence, our model can generate …

This paper studies the impact government expenditure has on inflation by examining an augmented Phillips curve implied …, Changes in government expenditure account for a substantial portion of inflation variations and provide new insights into the … "missing disinflation" puzzle, We also find that inflation and inflation expectations respond negatively to fiscal spending …

horizons ranging from 6 to 24 months. We find that gold contains significant information for future inflation for several … countries, especially for those that have adopted formal inflation targets. This finding may arise from the manner in which … inflation expectations are formed in these countries, which may result in more rapidly mean-reverting inflation rates. Compared …

This paper studies the formation of consumers' inflation expectations using micro-level data from the Michigan Survey …. It shows that beyond the well-established socioeconomic determinants of inflation expectations such as gender, income or … the average household in response to increasing media reporting about inflation. …

Inflation targeting (IT) had originally been introduced as a device to bring inflation down and stabilize it at low … levels. Given the current environment of persistently weak inflation in many advanced economies, IT central banks must now … bring inflation up to target. In this paper, the author tests to what extent inflation expectations are anchored in such …

become cash constrained. Since inflation reduces the future purchasing power of money and the value of retaining money …, buyers tend to spend their money faster in response to higher inflation. In particular, more buyers choose to spend money and … buyers spend on average a higher fraction of their money. The model naturally captures the hot potato effect of inflation …

Motivated by the observation that survey expectations of stock returns are inconsistent with rational return … literature on asset pricing are consistent with the survey evidence. We empirically test (1) the notion that survey forecasts … constitute rational but risk-neutral forecasts of future returns, and (2) the notion that survey forecasts are ambiguity averse …

effects of inflation. Whether a buyer uses money or credit depends on the fixed cost of credit and the inflation rate. In … particular, inflation not only makes money less valuable, but also makes credit more expensive because of delayed settlement …. Based on quantitative analysis, the model suggests that the relationship between inflation and credit exhibits an inverse U …