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The macroeconomic effects of inflation uncertainty

Metiu, Norbert; Prieto, Esteban - 2023

The uncertainty of U.S. core inflation, measured by the stochastic volatility of forecast errors, has soared to a level … increase after a positive shock to core inflation uncertainty in a vector autoregression. Endogenous changes in household … inflation expectations help to understand the transmission mechanism through which an inflation uncertainty shock generates …

Persistent link: https://www.econbiz.de/10014436184

An Investigation of the Volatility of Time Charter Markets

Erdogan, Oral - 2017

We aim to measure and conduct an analysis of volatility on the representative class of vessels from 2002 to the end of 2007. For the corresponding period of time, Clarkson's weekly data on T/C rates are employed during the research for seven different types of ships on five different duration...

Persistent link: https://www.econbiz.de/10012975339

The Price of Stability : Volatility and the Rise in Markups during the Great Moderation

Colla Rizzi, Giovanni; Lucke, Friedrich; Morzenti, Giovanni - 2023

During the Great Moderation, macroeconomic volatility declined while firm markups increased. We document a causal relationship between volatility and markups due to tacit collusion. We exploit the legalisation of interstate banking as an exogenous decrease in volatility. Using an instrumental...

Persistent link: https://www.econbiz.de/10014254341

Is increased price flexibility stabilizing? : redux

Bhattarai, Saroj; Eggertsson, Gauti B.; Schoenle, Raphael - 2012

shocks driving the economy and the systematic response of monetary policy to inflation: More flexible prices amplify the … the effect of supply shocks on output if interest rates are very responsive to inflation. Next, we estimate a medium …

Persistent link: https://www.econbiz.de/10009521652

Geographic Aggregation and the Measurement of Real Consumption Growth and Volatility

Lecznar, Jonathon - 2018

We estimate real consumption's growth rate and volatility in light of three new facts documenting geographic differences in consumption: (1) consumers in separate markets buy different products, (2) a product's market share varies geographically conditional on relative price, and (3) product...

Persistent link: https://www.econbiz.de/10012932589

Markups as a hedge for input price uncertainty: evidence from Sweden

Agrawal, Sneha; Gaurav, Abhishek; Suveg, Melinda - 2021

In this paper, we study a new channel to explain firms' price setting behavior. We propose that uncertainty about factor prices has a positive effect on markups. We show theoretically that firms with higher shares of inputs with volatile prices set higher markups. We use the Bartik shift-share...

Persistent link: https://www.econbiz.de/10012695355