The paper discusses the causes of failure of inflation stabilization plans. Following a description of stylized facts of inflation stabilization, a model of Balance of Payments crises is presented, highlighting some of the main factors leading to the collapse of stabilizations. Empirical results obtained when estimating a binary probit model over a panel of 34 stabilizations identify real excha...

In the United States, the Federal Reserve has a dual mandate of promoting stable inflation and maximum employment. Since the Fed directly controls only one instrument—the federal funds rate—the authors argue that the Fed’s priorities continuously alternate between inflation and economic activity. In this paper, the authors assume that the effective weights put by the Fed on different indicators...

Introduction. The large-scale war against Ukraine caused a radical change in its economic policy, including the monetary sphere. However, this did not affect plans of National Bank to return inflation targeting (IT) regime after end martial law period. Problem Statement. introduction IT was by chronic exchange rate and problems that occurred despite many attempts fix hryvnia US dollar. applicat...

______________________________________________________________________________ Abstract Motivation. Quantifying the impact of the introduction of physician fee schedules in workers compensation is an integral part of NCCI legislative pricing. Although the vast majority of U.S. states have physician fee schedules in place, a small number of jurisdictions operate without such a legal provision. S...

We study the low frequency comovements in unemployment, inflation and the federal funds rate in the U.S. From 1970 through 1979 all three series trended up together; after 1979 they all trended down. The conventional explanation for the buildup of inflation in the 1970s is that the Fed reacted to an increase in the natural rate of unemployment by conducting an overly passive monetary policy. We...

Euro area inflation stubbornly above 2 per cent Headline inflation in the euro area has, on average, remained stubbornly above 2 per cent -the upper limit of the European Central Bank’s definition of medium-term price stability -for most of the period since mid-2000. This persistence may seem puzzling in the light of weakness in activity and is only partly explained by factors like oil and food...

Using 100+ years of data from 18 developed countries, we use a frequency domain technique to compute “long-run” correlations between inflation on the one hand and money growth nominal interest rates other. The estimated long-run are almost always positive. Their magnitude is relatively substantial for growth, more modest rates. We conclude that some traditional propositions about monetary neutr...