The savings-inflation puzzle

Trend Inflation and the Unemployment Volatility Puzzle

I show that the combination of small positive trend inflation with staggered prices may account for the large relative volatilities found in US labor market data. The model does not have any wage rigidity and is hit only by an aggregate technology shock. The calibration procedure uses standard parameter values. Controlling for the sample average of the CPI inflation rate and the degree of price...

Solving the annuity puzzle: The role of mortality salience in retirement savings decumulation decisions

We propose mortality salience – increased accessibility of death-related thoughts – as one previously unexplored explanation for the annuity puzzle, the low rate at which retirees buy annuities even though economists recommend annuities as an optimal decision. Across four studies we show that mortality salience decreases how likely individuals are to put savings into an annuity. By forcing cons...

The reset inflation puzzle and the heterogeneity in price stickiness ¬リニ

New Keynesian models have been criticised on the grounds that they require implausibly large price shocks to explain inflation. Bils et al. (2012) show that, while these shocks are needed to reduce the excessive inflation persistence generated by the models, they give rise to unrealistically volatile reset price inflation. This paper shows that introducing heterogeneity in price stickiness in t...

The Relation Between Inflation and Inflation Uncertainty In Iran

The Role of Unbalanced Balance Sheet of Banking System in Creating the Puzzle of Interest Rate, Inflation and Liquidity Growth: Evidence from Iran

The analysis of macroeconomic variables for current situation in Iran indicates a Conundrum. Solving this puzzle is vital for Central Bank of Iran in order to choose an appropriate approach for monetary policy and banking supervision. Increase in liquidity growth rate, significant decrease of inflation rate and interest rate rigidity are the three sides of this puzzle. This study designs an inn...