Inflation, Market Failures, and Algorithms

Market Power and Inflation

This paper examines the extent to which a decline in market power could have contributed to the general decline in inflation rates experienced in developed countries during the 1990s. *Staff economist of the Division of International Finance of the Federal Reserve Board. Email: [email protected]. I wish to thank Jon Faust, Steve Kamin, and Jeremy Rudd for valuable comments. This paper repr...

Inflation and Financial Market Performance

Market Failures, Government Solutions, and Moral Perceptions

It should be obvious to even the casual observer that both markets and governments fail—neither comes close to achieving perfection. Externalities, both positive and negative, are the most common explanation for market failures. The undersupply of public goods, for example, is seen as a market failure, and is the direct result of a positive externality being generated when a person contributes ...

The Choice between Market Failures and Corruption

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Expectational Coordination Failures and Market Outcomes' Volatility

The first part of this text comes back on the standard economic viewpoint on expectational coordination, a viewpoint that the recent events have challenged. The second part reviews the existing directions for a critical assessment of the rational expectations hypothesis. The third part shows how such a critical assessment, along the lines of the socalled “eductive” learning approach, radically ...