This paper characterizes Ramsey-optimal monetary policy in a medium-scale macroeconomic model that has been estimated to fit well postwar U.S.\ business cycles. We find that mild deflation is Ramsey optimal in the long run. However, the optimal inflation rate appears to be highly sensitive to the assumed degree of price stickiness. Within the window of available estimates of price stickiness (b...

The fiscal theory says that the price level is determined by the ratio of nominal debt to the present value of real primary surpluses. I analyze long-term debt and optimal policy in the fiscal theory. I find that the maturity structure of the debt matters. For example, it determines whether news of future deficits implies current inflation or future inflation. When long-term debt is present, th...

The prospects for achieving price stability and full employment sooner with wage and price controls than with traditional monetary and fiscal actions alone depend on the ability of the wage and price controls to dampen expectations of inflation. Until expectations of inflation are substantially reduced, inflationary pressures \vill remain strong evcn though measured prices are constrained by go...

In a stylized Neo-Keynesian model with Calvo-type price and wage stickiness, this paper evaluates the usefulness of delegating price level and nominal wage targets to a discretionary central bank when the monetary policy objectives are summarized by a utility-based loss function. Despite its ability to engender policy inertia, price level targeting is often dominated by inflation targeting when...


 In carrying out a life cycle, we need to make an investment so that the funds currently have can be used for next few years. This study aims determine simultaneous and partial influence of inflation, interest rates, rupiah exchange rate, money supply gross domestic product on composite stock price index. The sampel in this amounted 40 data with quarterly was limited 2011:Q3 2021:Q2 obser...

For a central bank to fulfil its price stability mandate, the accurate assessment of inflation expectations is of crucial importance. Market participants gauging long-term investments have similar concerns about inflation. Traditionally, inflation expectations have been derived from models or through surveys of market participants’ opinions. In the mid to late 1990s financial markets started to...

We revisit a foundational theoretical paper in the menu cost literature, Sheshinski and Weiss (1983), one of the few to treat stochastic inflation with persistent deviations from trend. In contrast to the original finding, we find that optimal pricing in this environment entails using different (s, S) bands in high-inflation and low-inflation states of the world. The low-inflation band is stric...

Standard economic models predict that the choice of an exchange rate regime has important implications for the interdependency of national monetary policies, which is sometimes measured by the degree of inflation transmission across borders. In this paper, we examine how inflation rates in two small open economies, namely Hong Kong and Singapore, interact with that in the U.S. It is found that ...

This study aims to determine the relationship between population aged 30-34 years and inflation as measured by Gross Domestic Product (GDP) deflator. The method used in this is Granger Causality Test. impact of research can be seen from study's results, which men are very influential economy. Moreover, most workers world men. greatly influences economic growth inflation. male has more influence...

Introduction Central banks around the world have come to recognize the importance of maintaining low and stable inflation. One widely employed tool for helping to do so is known as inflation targeting, whereby a central bank sets a numeric goal for inflation. Once this target is publicly stated, the bank can be held accountable for its actions in regard to meeting, or not meeting, this target. ...