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I study the effect of the trending relative price of investment on the optimal target rate of inflation. The price of … investment has a decreasing trend relative to that of consumption because of investment-specific technological progress. If the … prices of investment goods are sticky, a benevolent planner puts weight on stabilizing those prices, which works to raise the …
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and the relative price of investment to investigate the relationship between neutral technology and investment … algorithms. The results indicate that total factor productivity and the relative price of investment are, each, well … technology and investment-specific technology follow independent processes is not supported by the features of the time series …
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We use consumer price data for 205 cities/regions in 21 countries to study PPP deviations before, during and after the major currency crises of the 1990s. We combine data from industrialized nations in North America (Unites States, Canada and Mexico), Europe (Germany, Italy, Spain and Portugal),...
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