Inflation on a basic level is very simple to understand, however we live in a complex world. Inflation does not work the same way as you might expect. For example, a rise in the price of a chocolate candy bar means that the candy bar is experiencing price inflation. The cause of the ...
Such an inflation model is estimated using data for industrial countries, and the output costs of a disinflation path are calculated, first analytically in a simple theoretical model, then by a simulation of a global, multiregion empirical model. The credibility of a preannounced path for money ...
The interplay between the inflation effects of pass through and openness suggest that both factors may influence the terms of the output-inflation trade-off. We develop a simple theoretical model showing how both pass through and openness can interact to influence the sacrifice ratio, and we ...
“It’s not just my argument. I think this is fairly well documented and it is also common sense…Andrew Haldane from the Bank of England has done a lot of work on this in terms of the subsidy that you get, if you are considered systemically important or too big to fail, it is bet...
We study inflation in scalar–tensor perturbative quantum gravity driven by a one-loop effective potential. We consider effective potentials generated by three models. The first model describes a single scalar field with a nonvanishing mass. The second model describes a massless scalar field with ...
We construct a simple inflationary model in terms of 5-branes wrapping a 2-cycle and traveling towards the tip of the Klebanov-Strassler throat. Inflation ends when the branes reach the tip of the cone and self-annihilate. Assuming a quadratic potential for the brane it is possible to match...
To interpret these results, the paper presents a simple model, generalized in the appendices, to show how the central bank's tolerance of deviations from the target, as well as the policy horizon, depend on the cost of output deviations from full employment, and on the slope and degree of...
In so-calledzero-coupon inflation swaps, a single payment is made by one party at the maturity of the contract. This single-pay contrasts to swaps where the submission of payments happen throughout the deal in a series of exchanges.
The answer is pretty simple: you invest! You must invest your money in a financial instrument yielding more than inflation. As long as your assets generate more returns than the inflation rate, you will be safe, and you will be able to buy a ton of sugar in 20 years. And if you are...
Hawkish vs Dovish: Explaining Monetary Policy in Simple Terms What is Terminal Rate and How Does it Affect Forex? Dispelling Recession Fears: An In-Depth Analysis for Finance and Investment Enthusiasts About Ezekiel Chew Ezekiel Chew the founder and head of training at Asia Forex Mentor isn’t...