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We develop a multi-sector sticky-price DSGE model that can endogenously deliver differential responses of prices to aggregate and sectoral shocks. Input-output production linkages induce across-sector pricing complementarities that contribute to a slow response of prices to aggregate shocks. In...
Persistent link: https://www.econbiz.de/10009372940
We examine the extent to which vertical and horizontal market structure can together explain incomplete retail pass-through. To answer this question, we use scanner data from a large U.S. retailer to estimate product level pass-through for three different vertical structures: national brands,...
Persistent link: https://www.econbiz.de/10009714472
The current paper analyzes the effects macroeconomic variables on inflation in of Sudan. The selected data set was from … was followed by relative stabilization and less inflation rates. Similar changes in the monetary policies were observed … there are negative effects of some macroeconomic variables on inflation, specifically GDP which records (β=6.0). Thus, GDP …
Persistent link: https://www.econbiz.de/10013128190
We develop a multi-sector sticky-price DSGE (dynamic stochastic general equilibrium) model that can endogenously deliver differential responses of prices to aggregate and sectoral shocks. Input-output production linkages induce across-sector pricing complementarities that contribute to a slow...
Persistent link: https://www.econbiz.de/10013124671
The main focus of the present paper is to analyze the impacts of financial policy on inflation rates. The analysis … utilized to reflect the relations between financial policy and inflation. Thus, more lights are shed on the fact that the first … components represented in governmental expenditure and taxation and the dependant variable inflation. The results show that there …
Persistent link: https://www.econbiz.de/10013107752
individual-goods price adjustments, have stock returns that are always positively correlated with inflation. The cross … inflation is positive, agents are willing to pay a premium to hold assets whose returns covary negatively with inflation. In … contrast, we empirically find that the dispersion in the correlation between stock returns and inflation is about 100 times …
Persistent link: https://www.econbiz.de/10013073270
The relationship between inflation and relative price variability (RPV) is widely believed to be positive and stable … but varies significantly in a way that coincides with regime changes of inflation or monetary policy. It was positive in … the high inflation environment of the 1970s and the early 1980s as often reported by numerous earlier studies, but changes …
Persistent link: https://www.econbiz.de/10013158104
their expenditure shares when forming expectations about price inflation. We develop a simple dynamic model of the economy … for individuals to place more weight on the movement of prices in these sectors. We use survey data on expected inflation … the United States. We find food price inflation is weighted more heavily and energy price inflation is weighted less …
Persistent link: https://www.econbiz.de/10013006057
We develop a multisector sticky-price DSGE model that can endogenously deliver differential responses of prices to aggregate and sectoral shocks. Input-output production linkages and a (standard) monetary policy rule contribute to a slow response of prices to aggregate shocks. In turn, labor...
Persistent link: https://www.econbiz.de/10012857547
Many central banks in emerging and advanced economies have adopted an inflation-forecast targeting (IFT) approach to … monetary policy, in order to successfully establish a stable, low-inflation environment. To support policy making, each has …-fledged inflation targeting …
Persistent link: https://www.econbiz.de/10013019008