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Author: Massimo Caruso
Publisher:
ISBN:
Category :
Languages : en
Pages : 84
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Book Description
Author: Massimo Caruso
Publisher:
ISBN:
Category :
Languages : en
Pages : 84
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Author: David C. Parsley
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We examine the link between inflation and the variability of relative prices in U.S. equity markets and in U.S. goods and services markets. We find strong, comparable links in both sets of markets. This finding represents a puzzle since conventional wisdom ? derived from menu cost or imperfect information models ? is not compelling in equity markets. We next examine whether we can attribute the results to small sample biases. We do find an important but generally overlooked bias that is present in many existing studies. However, the bias is too small to explain our own findings, and the puzzle remains.
Author: David Fielding
Publisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 48
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Author: Sean Holly
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 12
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Author: Klaus Adam
Publisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 0
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Book Description
Using a novel identification approach derived from sticky price theories with time or state-dependent adjustment frictions, we empirically identify the effect of inflation on relative price distortions. Our approach can be directly applied to micro price data, does not rely on estimating the gap between actual and flexible prices, and only assumes stationarity of unobserved shocks. Using U.K. CPI micro price data, we document that suboptimally high (or low) inflation is associated with distortions in relative prices that are highly statistically significant. At the aggregate level, fluctuations in inefficient price dispersion are sizable and covary positively with aggregate inflation. In contrast, overall price dispersion fails to covary with inflation because it is mainly driven by trends in the dispersion of flexible prices.
Author: Guy Debelle
Publisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 29
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Book Description
We test whether the time-series positive correlation of inflation and intermarket relative price variability is also present in a cross-section of US cities. We find this correlation to be a robust empirical regularity: cities which have higher than average inflation also have higher than average relative price dispersion, ceteris paribus. This result holds for different periods of time, different classes of goods, and across different time horizons. Our results suggest that at least part of the relationship between inflation and relative price variability cannot be explained by monetary factors
Author: Sartaj Rasool Rather
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Unlike earlier literature that documented positive association between inflation and the dispersion of relative prices over time, the empirical evidence from this study suggests that the relative price dispersion increases in response to the deviation of inflation from certain threshold/target level in either direction rather than inflation per se. The striking feature of the empirical evidence from United States and Japan is that the inflation rate at which the dispersion of relative prices is minimised turn out to be 4%; hence, supporting the proposal of 4% inflation target for both the countries.
Author: Theresa Christine Van Hoomissen
Publisher:
ISBN:
Category :
Languages : en
Pages : 296
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Author: Spiros Pantelias
Publisher:
ISBN:
Category : Inflation (Finance)
Languages : en
Pages : 178
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Author: Zvi Hercowitz
Publisher:
ISBN:
Category : Money
Languages : en
Pages : 36
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Book Description
A price dispersion equation is tested with data from the German hyper-inflation. The equation is derived from a version of Lucas' (1973) and Barro's (1976) partial information-localized market models. In this extension, different excess demand elasticities across commodities imply a testable dispersion equation, in which the explanatory variable is the magnitude of the unperceived money growth. The testing of this hypothesis requires two preliminary steps. First, a price dispersion series is computed using an interesting set of data. It consists of monthly average wholesale prices of 68 commodities ranging from foods to metals, for the period of January, 1921 to July, 1923. The next step is the delicate one of measuring unperceived money growth. This estimation implies the postulation of an available information set and also a function relating the variables in this set to money creation. The function used was based on considerations related to government demand for revenue. The model receives support from the empirical analysis although it is evident that unincluded variables have important effects on price dispersion
