In a parsimonious regime switching model, expected consumption growth varies over time. Adding inflation as a … expected inflation. Embedded in a general equilibrium asset pricing model with learning, these dynamics replicate the observed …

This paper begins by ranking the absolute value of changes in the 10-year break-even inflation (BEI) calculated using … 10-year Treasury notes and 10-year TIPS. Next, a news search is conducted to determine what inflation related information … the three competing theories of price determination: the classic monetary theory, the fiscal theory, and a “Keynesian …