We demonstrate the existence of chaos in realistic models of two-field inflation. The chaotic motion takes place after the end of inflation, when the fields are free to oscillate and their motion is only lightly damped by the expansion of the universe. We then investigate whether the presence of chaos affects the predictions of two-field models, and show that chaos enhances the production of to...

The paper shows that Liquidity Deflation, a liquidity-drainage mechanism associated with Safe Asset Shortage, helps to rationalize supply-side liquidity trap and involuntary unemployment under wage/price flexibility, especially in economies that suffered massive liquidity destruction, like advanced economies in the wake of the Lehman crisis. Moreover, Liquidity Deflation is shown to imply defla...

Over the one and a half decades prior to the global financial crisis, advanced economies experienced a large growth in gross external portfolio positions. This phenomenon has been described as Financial Globalization. Over roughly the same time frame, most of these countries also saw a substantial fall in the level and variability of inflation. Many economists have conjectured that financial gl...

This paper uses a new data set that better measures inflation uncertainty to investigate the effects of inflation and inflation uncertainty on economic growth. In the cross section of forty-four countries that the new data allows, inflation uncertainty has a significant negative impact on economic growth. Uncertainty performs better than inflation crisis as an explanatory variable of economic g...

Recent increases in pathology costs per scheme member are a concern to medical schemes and pathologists alike. To better understand the observed increasing costs, the National Pathology Group commissioned Prognosys to analyse the trends affecting these increases. We found that these increases are driven by inflation, increases in utilisation, and redistribution of the burden of cost. The identi...

a r t i c l e i n f o Keywords: Asymmetry Inflation Relative price variability (RPV) U-shape JEL classification: E30 E31 E52 It is widely perceived that relative prices are more dispersed in periods of price decreases than in periods of price increases. We show that the asymmetry results from misspecifying the true, U-shaped, underlying model with a piecewise linear regression model. Ever since...

A prominent policy issue of the 1970s and one that seems certain to dominate the early 1980s is the appropriate response to a prevailing high rate of inflation. The view that there is a long-run trade-off between inflation and unemployment, widely accepted at the end of the sixties, is now held by only a small minority of economists. It is still widely believed, however, that there is a short-r...

We inspect how inflation target announcements are instrumental in building central bank credibility and shaping the public’s inflation expectations. Investigating the role of announcements in two early adopters of inflation targeting by using a time varying credibility measure, we find that both the accuracy and the frequency of inflation announcements have a positive impact on how much attenti...

Several authors report regressions where inflation slows economic growth. These results have been criticized because of their sensitivity to the sample analyzed and because there does not appear to be a strong theoretical reason for believing that inflation significantly lowers growth. Indeed, researchers have suggested that inflation proxies for inflation uncertainty or poor economic policy. M...

Cytomegalovirus (CMV) has been shown to induce large populations of CD8 T-effector memory cells that unlike central memory persist in large quantities following infection, a phenomenon commonly termed "memory inflation". Although murine models to date have shown very large and persistent CMV-specific T-cell expansions following infection, there is considerable variability in CMV-specific T-memo...