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In this paper, we examine the trends in the CPI and the core part of the CPI to bring out a grievous error in the core … CPI. The core in certain years shows a jump of as much as 7% in certain quarters due to the error in the way the rent … prices are computed. During the periods following the Pay Commission implementation, the “ rent” prices rise in the CPI …
Persistent link: https://www.econbiz.de/10013218490
Households' and firms' subjective inflation expectations play a central role in macroeconomic and intertemporal microeconomic models. We discuss how subjective inflation expectations are measured, the patterns they display, their determinants, and how they shape households' and firms' economic...
Persistent link: https://www.econbiz.de/10013271201
of monetary policy. We find that the Bank of Canada's current preferred measures of core inflation-CPI-trim, CPI …-median and CPI-common-continue to outperform alternative core measures across a range of criteria. These measures remain less … biased, less volatile and much more persistent relative to alternative core measures and CPI inflation. They are also still …
Persistent link: https://www.econbiz.de/10012098513
Consumer Price Index (CPI) to identify the drivers of price growth, understand how bank financing flows into it, and the …The study examines challenges to monetary policy transmission, focusing on the National Bank of Ethiopia's (NBE) price … stabilization policies. The NBE's monetary policy framework aims to maintain price and exchange rate stability while supporting …
Persistent link: https://www.econbiz.de/10014349481
Persistent link: https://www.econbiz.de/10003956575
The price puzzle has been the focus of many studies, however, most of these studies have focused on developed economies … and especially on the U.S. Owing to this tendency; we do not know if the VAR framework produces the price puzzle in … developing economies. This study investigates the existence of the price puzzle for the period 1980-2003 in Colombia by using …
Persistent link: https://www.econbiz.de/10012771808
digital goods and services in the consumer price index (CPI) basket. Then we discuss indirect channels related to automation … and cost reduction as well as competition and markup. We also review the rise of e-commerce and how it can affect price …
Persistent link: https://www.econbiz.de/10014392978
Recent research has found that the dynamic properties of the New Keynesian model can be very different when the nominal interest rate is zero. Improvements in technology and reductions in the labor tax rate lower economic activity, and the size of the government purchase output multiplier can be...
Persistent link: https://www.econbiz.de/10010292223
This paper contributes to the policy evaluation literature by developing new strategies to study alternative policy rules. We compare optimal rules to simple rules within canonical monetary policy models. In our context, an optimal rule represents the solution to an intertemporal optimization...
Persistent link: https://www.econbiz.de/10010292303
stochastic general equilibrium models with nominal price rigidities. While the focus is on Calvo-style nominal price contracts … with a range of indexation rules for constrained price setters, the conclusions have much wider validity: (1) Regardless of … whether nominal price and/or wage rigidities are due to New-Keynesian, Old-Keynesian or sticky-information Phillips curves …
Persistent link: https://www.econbiz.de/10011604655