We develop a product market theory that explains why firms invest in general training of their workers. We consider a …-specific training if others do the same, because they would otherwise suffer a competitive disadvantage or need to pay high wages in …

We develop a product market theory that explains why firms invest in general training of their workers. We consider a …-specific training if others do the same, because they would otherwise suffer a competitive disadvantage or need to pay high wages in …

We introduce a new type of incentive contract for central bankers: inflation forecast contracts, which make central … bankers’ remunerations contingent on the precision of their inflation forecasts. We show that such contracts enable central … bankers to influence inflation expectations more effectively, thus facilitating more successful stabilization of current …