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inflation we might end up with price increases independent of the inflation rate. The purpose of this teaching note is to … present an approach to estimate nominal price increases examining historical nominal prices and inflation rates. This way we … immediate future inflation rate. This approach can be used to asses the risk premium a debt holder (in case it is a bank loan …
Persistent link: https://www.econbiz.de/10010762939
Index (Indice de la Bolsa de Bogotá, IBB). The index is analyzed from January, 1930 to December, 1998. The inflation rate … covers the same period; the inflation rate as measured by the Consumer Price Index. This exploratory paper does not intend to … terms of economic return. Also it can be said that inflation is negative to the return at the stock market, thus: the larger …
Persistent link: https://www.econbiz.de/10010762969
, not-withstanding that inflation in some countries tends to converge towards the euro area level. Overall, inflation …
Persistent link: https://www.econbiz.de/10010782874
nominal return on stocks move in one to one correspondence with the expected rate of inflation. The relationship between … nominal stock return and inflation is examined for four stock indices. The empirical results suggest that the Fisher effect …
Persistent link: https://www.econbiz.de/10010783665
In this paper the influence of inflation on capital cost and capitalization of the company within modern theory of …., 2008) and within its perpetuity limit – Modigliani – Miller theory is investigated. By direct incorporation of inflation … into both theories, it is shown for the first time that inflation not only increases the equity cost and the weighted …
Persistent link: https://www.econbiz.de/10010783762
We study the pricing response of U.S. supermarkets to large demand shocks triggered by labor conflicts, mass population relocation, and shopping sprees around major snowstorms and hurricanes. Our focus on demand shocks is novel in the empirical literature that uses large datasets of individual...
Persistent link: https://www.econbiz.de/10010784151
expected inflation. The inability of the Fed to maintain a credible commitment to low interest rates in the face of increased … government spending and rising inflation led to the Fed-Treasury Accord of March 1951. Following the Accord, the external …
Persistent link: https://www.econbiz.de/10010784192
Monetary policy tools, including money supply and interest rate, are the most popular instruments to control inflation … interest rate, will reduce inflation by reducing aggregate demand in an economy. However, monetary policy could be … reducing aggregate supply in the economy. If tight monetary policy is used to reduce this cost push inflation, the cost side …
Persistent link: https://www.econbiz.de/10010784681
This paper estimates the magnitude of the exchange rate pass-through to consumer prices in Mexico. Moreover, it analyzes if the pass-through dynamics have changed in recent years. In particular, it uses a methodology that generates results consistent with the hierarchy implicit in the CPI. The...
Persistent link: https://www.econbiz.de/10010784782
I study the diffusion process of permanent disinflationary shocks in the Mexican economy using disaggregated price data for 283 goods across 46 cities in the period 1995-2012. I first show that the distribution of shocks shows considerable heterogeneity, with more than 80% of all cases having...
Persistent link: https://www.econbiz.de/10010784787