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Tuesday, May 19, 2020 | History

2 edition of Implications of uncertainty about long-run inflation and the price level found in the catalog.

Implications of uncertainty about long-run inflation and the price level

Gerald J. Stuber

Implications of uncertainty about long-run inflation and the price level

by Gerald J. Stuber

  • 310 Want to read
  • 30 Currently reading

Published by Bank of Canada in [Ottawa] .
Written in English

    Subjects:
  • Inflation (Finance),
  • Uncertainty.

  • Edition Notes

    Statementby Gerald Stuber.
    SeriesBank of Canada working paper -- 2001-16, Working paper (Bank of Canada)
    ContributionsBank of Canada.
    The Physical Object
    Paginationv, 28 p. ;
    Number of Pages28
    ID Numbers
    Open LibraryOL21239090M

    Ex ante effects. Uncertainty about inflation can affect the economy ex ante through three channels. First, inflation uncertainty affects financial markets by raising long-term interest ratesS. econd,inflation uncertainty leads to uncertainty about other vari-ables that are important in economic decisions. Downloadable (with restrictions)! Purpose - – Inflation and its related uncertainty can impose costs on real economic output in any economy. This paper aims to analyze the relationship between inflation and inflation uncertainty in India. Design/methodology/approach - – The methodology uses a generalized autoregressive conditional heteroscedasticity (GARCH) model and Granger Causality by:

    The Impact of Inflation Uncertainty on the Labor Market A. Steven Holland inflation rates have risen around the woiid over the last 20 years the impact of inflation has become a topic of widespread interest, Evidence suggests that higher inflation imposes real costs on society by lead-ing to increased uncertainty about futur-einflation and,File Size: KB. It is not high prices but rising price level that con­stitute inflation. It constitutes, thus, an over­all increase in price level. It can, thus, be viewed as the devaluing of the worth of money. In other words, inflation reduces the purchasing power of money. A unit of money now buys less. Inflation can also be seen as a recurring phenomenon.

    The main findings are as follows. Steady-state inflation and inflation uncertainty have declined steadily since the inception of EMU, whilst short-run uncertainty has stabilised. A sequential dummy procedure provides further evidence of a structural break coinciding with the introduction of the euro and resulting in lower long-run uncertainty. Implications of Uncertainty about Long-Run Inflation and the Price Level by Long-Run Inflation Uncertainty and Economic Activity and Financial Markets 9 sense of not being predictable, given past performance (Golob ). Similarly, long-run price-level uncertainty is the extent to which the longer-term path of the Cited by: 5.


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Implications of uncertainty about long-run inflation and the price level by Gerald J. Stuber Download PDF EPUB FB2

Download Citation | Implications of Uncertainty about Long-Run Inflation and the Price Level | This paper surveys recent developments in the theoretical and empirical literature on the economic.

In general, recent empirical work for Canada and elsewhere considerably strengthens the view that reductions in long-run inflation uncertainty can have beneficial effects on financial markets, capital spending, and ultimately aggregate levels of economic activity.

In general, recent empirical work for Canada and elsewhere considerably strengthens the view that reductions in long-run inflation uncertainty can have beneficial effects on financial markets, capital spending, and ultimately aggregate levels of economic by: 5.

Implications of Uncertainty about Long-Run Inflation and the Price Level. there is evidence that uncertainty about long-run inflation fell considerably between the high-inflation period of the s and early s and the subsequent moderate-inflation period, and decreased still further in the low-inflation period that has been evident Author: Gerald Stuber.

Price-level targeting has been recommended as a means of reducing long-term uncertainty about the price level. McCallum () dismisses the notion of price-level targeting by comparing the log of the price level that followed a pure random walk to a preset target path.

Figure 3 shows the amount of price-level uncertainty inherent in a policy. Downloadable. Inflation and inflation uncertainty are critical factors influencing the functioning of markets, and thus the efficient flow of economic activities.

In this study, we investigated the effects of inflation and inflation uncertainty on growth in Ghana. Unlike majority of the previous studies, we distinguished the short-run effects of inflation and inflation uncertainty on growth Author: Bernard Njindan Iyke, Sin-Yu Ho.

Unexpected increases in the price level, which are primarily caused by unexpected changes in the conduct of monetary policy, have been shown to cause lower levels of economic growth and development.1 Also known as inflation uncertainty, such unexpected increases in the price level preclude economic agents from transacting in.

The inflation outlook also reflects the Committee's judgment that inflation expectations will remain reasonably well anchored at a level consistent with PCE price inflation of 2 percent in the long run, and that the restraint imposed in recent years by a variety of special factors, including movements in the relative prices of food, energy, and.

In long run, stimulating effects of monetary policy wear off. Only increase in price level in long run, so suffer from the problems of inflation (which include price confusion, wealth redistribution, and uncertainty about future price levels.

Sincethe federal funds rate has ranged between a high of percent and a low of percent a year. In the federal funds market, the higher the federal funds rate, the larger is. Stock prices, inflation and inflation uncertainty in the U.S.: Testing the but may be positively related to inflation in the long-run.

However, using a similar framework, Sharpe () draws a new perspective on the relationship (). We focus on stock price level and not on returns as Cochran and Defina () and Alexakis et al Author: Claudiu Albulescu, Christian Aubin, Daniel Goyeau.

the level of inflation has a much stronger effect on the variance of permanent shocks than on the variance of temporary shocks, and thus a stronger effect on uncertainty at long horizons.

Quantifying the long-run response of real stock prices to a permanent inflation shock for 16 industrial countries, Rapach () finds little evidence for a negative longrun real stock price.

Start studying Macroeconomics Ch 8. Learn vocabulary, terms, and more with flashcards, games, and other study tools. money supply x velocity of money=price level x real GDP Real GDP is exogenously given.

Yt=Ybart In the long run a key determinant of the price levels is the money supply. Francis Vitek, "An Empirical Analysis of Dynamic Interrelationships Among Inflation, Inflation Uncertainty, Relative Price Dispersion, and Output Growth," Staff Working PapersBank of Canada.

Gerald Stuber, "Implications of Uncertainty about Long-Run Inflation and the Price Level," Staff Working PapersBank of Canada.

uncertainty for the U.S. However, different from previous works, we focus on the long-run relationship and perform a sector-level analysis. Moreover, we use two newly proposed measures of inflation uncertainty, based on time-varying unobserved component models.

Methodology Measuring the inflation uncertaintyCited by:   Inflation effects on economy. Presented By: Rishi Vyas (BM) 2.

• Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase.

• As inflation rises, every rupee you own buys a. Get this from a library. Implications of uncertainty about long-run inflation and the price level. [Gerald J Stuber; Bank of Canada.].

cumulative effect of this inflation is staggering: the price level has risen more than 1,% since the end of World War II. 1 Inflation rose in the s, peaked in the s and early s, and has been generally low but positive since Size: KB.

Inflation and inflation-uncertainty in India: The policy implications of the relationship Article (PDF Available) in Journal of Economic Studies 41(1) January with ReadsAuthor: Abdur Chowdhury. Fig.

1 portrays annual data on the consumer price level and inflation rate in the United Kingdom for the period – To us, the figure shows contending patterns of price stability and predictability.

Data on the logarithm of the price level, shown in the left panel, convey the impression that the gold and silver commodity standards that prevailed before had produced a century of Cited by: 6.Inflation and inflation uncertainty are critical factors influencing the functioning of markets, and thus the efficient flow of economic activities.

In this study, we investigated the effects of inflation and inflation uncertainty on growth in Ghana. Unlike majority of the previous studies, we distinguished the short-run effects of inflation and inflation uncertainty on growth from the long Author: Bernard Njindan Iyke, Sin-Yu Ho.Inflation, Price Level and Hybrid Rules under Inflation Uncertainty Article in Scandinavian Journal of Economics (1) February with 34 Reads How we measure 'reads'.