This paper contains an empirical study of the effects of credibility on the cost of disinflation. The analysis is based on a dataset comprised of seventy-two disinflation episodes from 19 OECD countries. We measure the "ex ante credibility" of a disinflation episode as the probability of a...

This study investigates the effects of Federal minimum wage policy on mini-mum wage employment, aggregate employment, and average wage rates. The theoretical analysis focuses on the possible effect of the Federal minimum wage in constraining wages and employment in a subset of labor markets, on...

This paper introduces contemporaneously available monetary data into an "equilibrium" model that combines rational expectations, market clearing, and incomplete information about monetary disturbances. Data on the current money stock involve a preliminary estimate that is subject to a subsequent...