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The effects of stochastic inflation on asset prices

Labadie, Pamela A. - Federal Reserve Bank of Minneapolis - 1988

Stochastic inflation affects the risk characteristics, measured by the equity premium and the correlation of the equity’s return with consumption, in a fundamental way. The riskiness of a dollar-denominated asset depends on two conditional covariances: the covariance of the marginal rate of...

Persistent link: https://www.econbiz.de/10005372834

U.S. inflation developments in 1996

Clark, Todd E. - In: Economic Review (1997) Q I, pp. 11-30

with price stability. Because stable prices are essential to maximum long-term economic growth and living standards, the … first examines the behavior of inflation over the past year, showing that sharp increases in food and energy prices caused … most overall inflation measures to rise, while inflation in nonfood and nonenergy prices slowed. Second, he shows that …

Persistent link: https://www.econbiz.de/10005373355

Achieving price stability: a 1993 report card

Kahn, George A. - In: Economic Review (1994) Q I, pp. 5-18

The primary goal of Federal Reserve monetary policy is to foster maximum sustainable growth in the U.S. economy by achieving price stability over time. Although considerable progress toward price stability has been made since the early 1980s, inflation remains above the level most analysts would...

Persistent link: https://www.econbiz.de/10005373392

Implications of structural changes in the U.S. economy for pricing behavior and inflation dynamics

Willis, Jonathan L. - In: Economic Review (2003) Q I, pp. 5-27

Some key features of the behavior of inflation in the United States appear to have changed in the past 20 years, with potentially important implications for forecasters and policymakers. Recent studies have provided evidence of a decline in both the variability and persistence of inflation. ;...

Persistent link: https://www.econbiz.de/10005373502

Price level versus inflation rate targets in an open economy with overlapping wage contracts

Hansen, Eric - Center for Pacific Basin Monetary and Economic Studies, … - 1996

The standard result in models of sticky prices is that an inflation rate target is better than a price level target at … economy that is characterized by flexible prices in one sector and sticky prices in another sector. An example is a highly … open economy that has flexible prices in the tradeable goods sector and sticky prices (due to Taylor-type overlapping wage …

Persistent link: https://www.econbiz.de/10005078409