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introduces a systematic bias in the measurement of inflation. For our data we find that the life cycle bias underestimates the … this has on the measurement of inflation. Using a large US scanner data set on supermarket products and applying flexible … measurement of inflation by around 0.30 percentage points each year …
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This paper gives money a role in providing cheap collateral in a model of banking; besides the Taylor Rule, monetary policy can affect the risk-premium on bank lending to firms by varying the supply of M0, so at the zero bound monetary policy is effective; fiscal policy crowds out investment via...
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