This article shows how the recovery of inflation in 2009-10 occurred precisely at the only time (since 1985) the models … would predict disinflation, i.e., inflation went up when the models said it should go down …

inflation differ over time. We show that the impact varies considerably over time, depends on the source of increased liquidity … (M1, M3-M1 or credit) and the underlying state of the economy (asset price boom-bust, business cycle, inflation cycle …

inflation differ over time. We show that the impact varies considerably over time, depends on the source of increased liquidity … (M1, M3-M1 or credit) and the underlying state of the economy (asset price boom-bust, business cycle, inflation cycle …

bad) uncertainty. The increased role of bad uncertainty implies that the conditional skewness of GDP growth and inflation …

-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 study examines the effect of inflation on stock returns in the context of the policy reaction function theory …. This theory contends that the nature and extent of the governmentÕs policy reaction to inflation will depend upon the … is at a business cycle peak than at a trough. Therefore, the effect of inflation on stock returns varies with the stage …

inflation and output can easily be explained in the context that agents do not have rational expectation. This important feature … correlated exogenous shocks to account for the high serial correlation in inflation and output while the behavioral model … strong force in producing the serial correlation in inflation and output. …