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inflation. Taking as given the paths of nominal labor compensation and labor productivity to approximate the evolution of …
Persistent link: https://www.econbiz.de/10010318369
The standard loss function gives the same weight to positive and negative deviations from the output and inflation … the target, and often also inflation rates that are below target, should be counted as gains instead of losses. …
Persistent link: https://www.econbiz.de/10010318590
Several explanations of the great inflation moderation (1982-2006) have been put forth, the most popular being that … inflation was tamed due to good monetary policy, good luck (exogenous shocks such as oil prices), or structural changes such as … inventory management techniques. Drawing from Post-Keynesian and structuralist theories of inflation, this paper uses a vector …
Persistent link: https://www.econbiz.de/10010318622
earlier studies, we find that US postwar data are consistent both with the view that inflation dynamics are forward … relevant determinant of inflation. We show that this is an important factor contributing to the weak identification of the …
Persistent link: https://www.econbiz.de/10010318951
We quantitatively analyze the way inflation alters the inequality of the income distribution in the U.S. economy. The … main mechanism emphasized in this paper is the bracket creep effect according to which inflation pushes income into higher …, we study time series from the U.S. economy. As our central result we find that irrespective of the level of inflation …
Persistent link: https://www.econbiz.de/10010320808
This paper examines the global drivers of inflation in 55 countries over the 1970-2022 period. We estimate a Factor … domestic shocks. We report three main results. First, global shocks have explained about 26 percent of inflation variation in a … typical economy. Oil price shocks accounted for only about 4 percent of inflation variation, but they had a statistically …
Persistent link: https://www.econbiz.de/10014540885
The COVID-19 pandemic had disastrous effects on health and economic activity worldwide, including in the Euro Area. The application of mandatory lockdowns contributed to a sharp fall in production and a rise in unemployment, inducing an expansionary fiscal and monetary response. Using a uniquely...
Persistent link: https://www.econbiz.de/10014551686
An apparent disconnect has taken place between inflation and economic activity in the US over the last 25 years, with … price inflation remaining remarkably stable in spite of large fluctuations in the output gap and other measures of economic … unconditional variation in US macro data into the components driven by demand and supply disturbances, and confront the inflation …
Persistent link: https://www.econbiz.de/10014551721
In recent years the world's two largest inflation-targeting central banks - the US Federal Reserve (the Fed) and the …, both revisions quickly became antiquated when inflation started to rise again in the wake of the pandemic. The change in … macroeconomic context (from stubbornly low inflation to persistent higher inflation) led both central banks to advocate 'policy …
Persistent link: https://www.econbiz.de/10014566789
generate substantial inflation. Such a shock induces an equilibrium decline in the relative price of services. If price … increase in goods prices, resulting in, on net, little inflation. If prices in the services sector are downwardly rigid …, however, this takes place mostly through an increase in goods prices, resulting in inflation. To illustrate the relevance of …
Persistent link: https://www.econbiz.de/10014581741