1930 (adjusting the 1930 prices for general inflation). Use of e-mail and access to the Internet, unheard of in 1930, reduce costs even further. The most important reason that trade has expanded so rapidly, however, is that government restrictions on trade between countries have come down. Western European countries are integrating into a single market. Canada, Mexico, and the United States hav...

Attempts are made to provide a theoretical justification for using the gravity model in the analysis of bilateral trade and apply the generalized gravity model to analyse the Bangladesh’s trade with its major trading partners using the panel data estimation technique. We have estimated the gravity model of trade (sum of exports and imports), the gravity model of export and the gravity model of ...

Abstract We assess the effects of financial shocks on inflation, and to what extent can account for “missing disinflation” during Great Recession. apply a Bayesian vector autoregressive model US data identify through combination narrative short-run sign restrictions. Our main finding is that contractionary temporarily increase inflation. This result withstands large battery robustness checks. N...

This paper analyzes the short-run dynamic process of inflation in Canada and examines whether a systematic variation in the relationship between inflation and output can be detected over time. In the theoretical literature, different models of price-setting behaviour predict that the slope of the Phillips curve will be a function of macroeconomic conditions, implying a time-varying sacrifice ra...

We propose a monetary model which features endogenous market incompleteness. Our framework combines the tractable features of competitive search with matching frictions of Menzio et al. (2013) with a costly participation model in a centralized market with complete insurance. Equilibrium market incompleteness arises because of: (i) an externality trading off matching opportunities with consumpti...

We study experiments of an overlapping generations model where inflation is determined by the monetary policy and by the amount of average saving within each period. We use a new experimental setup that allows us to observe more details of the process of expectation forming and separate this process from the actual saving process. In contrast to experimental findings by Lim, Prescott, Sunder; M...

This paper considers the impact of monetary policy on inflation–output variability trade-off for Sri Lanka and in doing so, draws lessons formulation early-stage developing economies. We examine how this has changed across different episodes, investigate persistence economic shocks inflation output. After exploring contribution towards macroeconomic performance more generally, we use experience...

We construct a search-theoretic model where fiat money coexists with real assets, and all assets can be used as a media of exchange. The terms of trade in bilateral matches are determined by a pairwise Pareto-efficient pricing mechanism. We do not have to appeal to exogenous liquidity constraints to generate asset prices that are consistent with the following facts: (i) fiat money can be valued...

Do neoliberal economic policies help or hinder human development? Many have argued that such policies promote economic stability and growth, which may have indirect positive effects on human welfare. Others claim that neoliberal policies retard human development. We argue that neoliberal economic policies may improve the human welfare in ways that are independent of their effects on economic pe...

in this paper, we develop an inventory model with delay in payments for deteriorating items. in our model, retailer who purchases the items enjoys a fixed credit period offered by his/her supplier and, in turn, also offers a credit period to his/her customers in order to promote the market competition. the demand is assumed to be linear function of the retailer's current-stock level. the effect...