Download or read book Coordination Fair Treatment and Inflation Persistence written by John C. Driscoll and published by . This book was released on 2002 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: Most wage-contracting models with rational expectations fail to replicate the persistence in inflation observed in the data. We argue that coordination problems and multiple equilibria are the keys to explaining inflation persistence. We develop a wage-contracting model in which workers are concerned about being treated fairly. This model generates a continuum of equilibria (consistent with a range for the rate of unemployment), where workers want to match the wage set by other workers. If workers' expectations are based on the past behavior of wage growth, these beliefs will be self-fulfilling and thus rational. Based on quarterly U.S. data over the period 1955-2000, we find evidence that inflation is more persistent between unemployment rates of 4.7 and 6.5 percent, than outside these bounds, as predicted by our model.

Download or read book Coordination Fair Tratment and Inflation Persistence written by John C. Driscoll and published by . This book was released on 2002 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Coordination Fair Treatment and Inflation Persistence written by John Christopher Driscoll and published by . This book was released on 2003 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Role of Policymakers in Business Cycle Fluctuations written by Jim Granato and published by Cambridge University Press. This book was released on 2006-03-13 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book's central theme is that a policymaker's role is to enhance the public's ability to coordinate their price information, price expectations, and economic activities. This role is fulfilled when policymakers maintain inflation stability. Inflation persists less when an implicit or explicit inflation target is met. Granato and Wong argue that inflation persistence is reduced when the public substitutes the prespecified inflation target for past inflation. A by-product of this co-ordination process is greater economic stability. In particular, inflation stability contributes to greater economic output stability, including the potential for the simultaneous reduction of both inflation and output variability - inflation-output co-stabilization (IOCS). Granato and Wong use historical, formal, and applied statistical analysis of business-cycle performance in the United States for the 1960 to 2000 period. They find that during periods when policymakers emphasize inflation stability, inflation uncertainty and persistence were reduced.

Download or read book Inflation Targets Credibility and Persistence in a Simple Sticky price Framework written by Jeremy Bay Rudd and published by . This book was released on 2003 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Working Paper Series written by and published by . This book was released on 2002 with total page 574 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book An Inflation Goal with Multiple Reference Measures written by William C. Whitesell and published by . This book was released on 2005 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Will the Proposed Application of Basel II in the United States Encourage Increased Bank Merger Activity Evidence from Past Merger Activity written by Timothy H. Hannan and published by . This book was released on 2004 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Calculating and Using Second Order Accurate Solutions of Discrete Time Dynamic Equilibrium Models written by and published by . This book was released on 2003 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Valuation Investment and the Pure Profit Share written by Pierre Lafourcade and published by . This book was released on 2004 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Uncertainty and Investment written by Stephen Bond and published by . This book was released on 2004 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book What Does the Yield on Subordinated Bank Debt Measure written by Urs W. Birchler and published by . This book was released on 2004 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The GSE Implicit Subsidy and Value of Government Ambiguity written by Wayne Passmore and published by . This book was released on 2003 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Capital Flows Among the G 7 Nations written by Michael Feroli and published by . This book was released on 2003 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Limited Network Connections and the Distribution of Wages written by Kenneth Joseph Arrow and published by . This book was released on 2004 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: "It is well-known that 50% or more of all jobs are obtained through informal channels i.e. connections to family or friends. As well, statistical studies show that observable individual factors account for only about 50% of the very wide variation in earnings. We seek to explain these two facts by assuming that the linking of workers and firms is mediated by limited network connections. The model implies that essentially similar workers can have markedly different wages and further that the inequality of wages is partly explained by variations in the sizes of workers' networks. Our results indicate that differences in the number of ties can induce substantial inequality and can explain roughly 15% of the unexplained variation in wages. We also show that reasonable differences in the average number of links between blacks and whites can explain the disparity in black and white income distributions"--Abstract.

Download or read book Monetary Policy and the Information Content of the Yield Spread written by Michael Feroli and published by . This book was released on 2004 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This paper demonstrates that the ability of the yield spread to predict output fluctuations is contingent on the monetary authority's reaction function. In particular, expectations of monetary policy actions are crucial for the spread to predict output conditional on the short-rate. Furthermore, numerical experiments suggest that the post-1979 decrease in the yield spread's predictive power is due to a shift in the monetary policy reaction function at that time"--Abstract.

Download or read book Employer to employer Flows in the U S Labor Market written by Bruce Fallick and published by . This book was released on 2004 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: