In this research, non-linear inflationary dynamics based on the concept of missing money is studied using the threshold autoregressive models based on seasonal data of the time interval (1990:04-2016:07) for the economy of Iran. The finding of the research shows that simple and Divisia liquidity growth variables are determined as threshold variables, and inflation reacts to changes in the growt...

Uncertainty about how the economy will evolve is a key concern for households and firms. People’s views on how likely it is that the economy will be growing, stagnating, or in recession help shape the actions they ncertainty about how the economy will evolve is a key concern for households and firms. People’s views on how likely it is that the economy will be growing, stagnating, or in recessio...

This paper examines the relationship between inflation and wage indexation in the postwar U.S. using data on the prevalence of cost-of-living adjustments in major collective bargaining agreements. I find that increases in inflation precede increases in wage indexation but reductions in inflation do not precede reductions in wage indexation. There is virtually no evidence that wage indexation af...

Within a unified framework, the author conducts an empirical investigation of dynamic interrelationships among inflation, inflation uncertainty, relative price dispersion, and output growth. Focusing on the Canadian industrial sector, the author finds weak evidence that inflation uncertainty rises with the level of inflation, with short-run inflation uncertainty minimized at a trend inflation r...

in macroeconomic studies, social welfare is assumed as a function of inflation and unemployment. although the social welfare function which is dependent to unemployment and inflation variables has been used widely in macroeconomic theories, but this relation needs to be tested through empirical observations. this paper, using variables such as to economics of happiness area and subjective wellb...

the purpose of this paper is to examine the impact of internal and external factors on the ratio of outstanding claims in those banks which are accepted in tehran stock exchange. for this purpose, we used the data obtained from 8 banks and credit institution active in the tehran stock exchange and using data regression panel.  the present survey was examined over the period 2011 till 2015. the ...

Multicollinearity in factor analysis has negative effects, including unreliable structure, inconsistent loadings, inflated standard errors, reduced discriminant validity, and difficulties interpreting factors. It also leads to stability, hindered replication, misinterpretation of importance, increased parameter estimation instability, power detect the true compromised model fit indices, biased ...

this paper tries to survey and estimate non-accelerating inflation rate of unemployment (nairu) and potential output. it uses the unobserved components model to propose a new method. the model consists of ukan law equations and philips curve. it uses unobservable key economic variable in the form of unobserved random trends in an equation system of three variables namely unemployment, gross dom...

Increases in uncertainty have ambiguous effects on the rate of investment in complete contracts models. Consequently, in order to model the adverse effects of high inflation on capital accumulation, macro models overimpose a CIA constraint to buy capital goods. The fall in investment is thus due to an increase in the effective price of capital goods, and not due to inflation uncertainty. In inc...

In many countries, the monetary policy instrument remains unchanged for a long period and shows infrequent responses to exogenous shocks. The purpose of this paper is to provide a new explanation on why the central bank’s policy instrument remains so unchanged. In the following analysis, we explore how Knightian uncertainty affects optimal monetary policy. We apply the Choquet expected decision...