The purpose of this research is to identify the impact of price hike on the living standard of middle income people. The researchers tried to identify the alternatives of middle class people in face of price hike or inflation. This descriptive analytical research is conducted by random probability sampling. The data were collected by a well designed questionnaire that was tested by experts in t...

This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of the inflation rate the central bank should use if it wants to maximize economic stability. The paper first formalizes this problem and examines its microeconomic foundations. It then shows how the weight of a sector in the stability price index depends on the sector’s character...

Since the 2000s, large fluctuations in commodity prices have become a concern among policymakers regarding price stability. This paper investigates the effects of commodity price shocks on headline inflation with a monthly panel consisting of 144 countries. We find that the effects of commodity price shocks on inflation virtually disappear within about one year after the shock. While the effect...

This paper focuses on internal and external factors, which influence the inflation rate in developing countries. A monetary model of inflation rate, capable of incorporating both monetary and fiscal policies as well as other internal and external factors, was developed and tested on Iranian data. It was found that, over the long run, a higher exchange rate leads to a higher price and that the f...

M any economists believe that price stability is the primary goal of monetary policy because it is thought to foster maximum sustainable economic growth. Price stability is often said to exist when changes in the general price level cease to be a factor in the decision processes of businesses and individuals. By this definition, price stability was not literally achieved in 1998, as many measur...

I establish that inflation risk is priced in the cross section of stock returns: Stocks that have low returns during inflationary times command a risk premium. I estimate a market price of inflation risk that is comparable in magnitude to the price of risk for the aggregate market. Inflation is therefore a key determinant of risk in the cross section of stocks. The inflation premium cannot be e...

Economists have not been altogether successful in their efforts to forecast “core” inflation—an inflation measure that typically excludes volatile food and energy prices. One possible explanation is that the models used to make these forecasts fail to distinguish the forces influencing price changes in core services from those affecting price changes in core goods. While core services inflation...