The imposition of a national retail sales tax would drive a wedge between the pretax and after-tax price levels. Failure to take the implications of this wedge fully into account has caused analysts to significantly underestimate the sales-tax rate that would be required to hold funding of...

We show that Howrey’s method for producing economic forecasts when data are subject to revision is easily generalized to handle the case where data are produced by a sophisticated statistical agency. The proposed approach assumes that government estimates are efficient with a finite lag. It...

In an economy in which debt obligations are fixed in nominal terms, a monetary policy focused narrowly on controlling inflation insulates lenders from aggregate output risk, leaving borrowers as residual claimants. This concentration of risk has the potential to exacerbate the financial distress...