Psychological evidence indicates that a person's well-being depends not only on his current consumption of goods, but on a reference level determined by his past consumption. According to Kahneman and Tversky's (1979) prospect theory, people care much more about losses relative to their...

Remarks at the New Jersey Bankers Association Economic Forum, Iselin, New Jersey.

Remarks at the Barclays 16th Annual Global Inflation-Linked Conference, New York City.

Remarks at Dominican College, Orangeburg, New York.