Recently a market in options based on CPI inflation (inflation caps and floors) has emerged in the US. This paper uses … quotes on these derivatives to construct probability densities for inflation. We study how these pdfs respond to news … empirical pricing kernels. The options-implied densities assign considerably more mass to extreme inflation outcomes (either …

inflation and Tobin's q; a normalized market price of capital. This stylized fact is explained within a dynamic stochastic … rising marginal cost of investment, (ii) production of human capital with endogenous growth and (iii) an inflation tax cash …-in-advance economy. The baseline endogenous growth model matches the US inflation and q long term correlation, while comparable exogenous …

This paper explores the long-run effects of inflation on the dynamics of private sector bank credit and economic growth … private sector bank credit in the economy exerts a positive impact on real GDP. In addition, inflation rates have contributed … increase in inflation is associated with a 0.07 % fall in long-run real rate of output through its effect on bank credit to the …

Inflation and earnings growth can push some tax payers into higher brackets in the absence of inflation …-indexed schedules. Moreover, inflation may affect the composition of individuals' income sources. As a result, depending on the relative … tax burden of labour and capital, inflation may decrease or increase the difference between before-tax and after …

We quantitatively analyze the way inflation alters the inequality of the income distribution in the U.S. economy. The … main mechanism emphasized in this paper is the bracket creep effect according to which inflation pushes income into higher …, we study time series from the U.S. economy. As our central result we find that irrespective of the level of inflation …

inflation differ over time. We show that the impact varies considerably over time, depends on the source of increased liquidity … (M1, M3-M1 or credit) and the underlying state of the economy (asset price boom-bust, business cycle, inflation cycle …

" to inflation, an effect that is known as exchange rate pass-through (ERPT). In particular, if an exchange rate … relatively lower ERPT in the past two decades, the exchange rate continues to be a large determinant of inflation in several …

inflation and Tobin’s q; a normalized market price of capital. This stylized fact is explained within a dynamic stochastic … rising marginal cost of investment, (ii) production of human capital with endogenous growth and (iii) an inflation tax cash …-in-advance economy. The baseline endogenous growth model matches the US inflation and q long term correlation, while comparable exogenous …