the practice of giving an employee a job title that implies status and importance. Title inflation renames an employee's job with a title that sounds more elevated or grand than the old one, even though the nature of the job has not changed. This is sometimes used as a form of motivation or incentive to make employees feel rewarded and more valued.
"Understanding inflation is crucial to investing because inflation can reduce the value of investment returns. Inflation affects all aspects of the economy, from consumer spending, business investment, and employment rates, to government programs, tax policies, and interest rates. This article explains the basics: What is Inflation? What Causes Inflation?...
This paper re-examines the relationship between inflation, inflation volatility and growth using cross-country panel data for the past 30 years. To examine the role of inflation uncertainty on growth, intra-year inflation data to construct an annual measure of inflation volatility is used. Using this measure, it is found that inflation...
Your last experience with inflation might have been the undeserved B you got in Rocks and Smocks, that science course for art majors you took in college. But unlike grade inflation, monetary inflation is serious business indeed. You can construct an inflation-fighting portfolio of your own -- or the fund...
An inflation-linked bond is a bond that provides protection against inflation. Most inflation-linked bonds, the Canadian "Real Return Bond "RRB and the new U.S. Treasury inflation-protected security IPS are principal indexed. This means their principal is increased by the change in inflation over a period. In most countries, the Consumer...
Low inflation has been a fact of economic life in many countries now for at least a decade. If inflation persistence has declined, why has it occurred? This paper addresses this question by studying the univariate inflation process in a number of countries. It helps to identify if changes in...
The purpose of this study is to test the hypothesis that inflation uncertainty increases at higher levels of inflation. Our analysis is based on the generalized autoregressive conditional heteroscedasticity GARCH class of models, which allow the conditional variance of the error term to be time-varying. Since this variance is a...
WASHINGTON -- If you think inflation will go up, it could be a self-fulfilling prophecy. You might demand bigger raises to pay for more expensive gas, groceries, rents or other things. And that behavior, in turn, can make inflation worse. If, on the other hand, you...
This paper examines the international experience with full-fledged inflation targeting monetary regimes. Stylized facts are brought together from a review of the institutional elements of inflation targeting frameworks, a comparison of actual and targeted inflation outcomes, and case studies of large inflation target misses. Inflation targets are missed about 40...
"THE PROBABILITY of an unwelcome substantial fall in inflation, though minor, exceeds that of a pickup in inflation from its already low level." Well, who would have thought it? The Us Federal Reserve has finally admitted that inflation can be too low. The Fed's policy statement last...
The Road to Zero Inflation For more than a decade, the Federal Reserve has had as its top priority the achievement of an inflation-free economy. That goal has proven to be elusive. The inflation rate declined substantially from 1980 through 1982, when the economy went through two recessions, the...
Interview with Albert Wojnilower This veteran Wall Street economist does not think rising inflation will set the stage for the next economic downturn. Falling profits will pull the rug out from under the stock market--and that could trip up the economy. Q Many people now argue that there...
REPEATED EPISODES OF moderate inflation were a central characteristic of many OECD economies during the 1960s, 1970s, and 1980s. This inflation experience is documented in Figure 1, which plots trend inflation for 19 OECD countries since 1960. (1) The figure shows that recurring bouts of inflation were common in these...
When was the last time one accounted for inflation when researching a company's financial statements? Believe it or not, inflation can fool even the most sophisticated investors. That is why it is important, when analyzing a company, that one understands how inflation affects the figures presented in a company's financial...
But it is not enough to explain the inflation of the 1970s to say that the U.S. economy had bad luck during the 1970s, that the political consensus to support a policy of inflation reduction did not exist until the very end of the 1970s, and that economic policy makers...
Inflation TargetingBen S. BernankeShould the Federal Reserve announce a quantitative inflation objective? Those opposed to the idea have noted, correctly, that the Fed has built strong credibility as an inflation-fighter without taking that step and that this credibility has allowed the Fed to be relatively flexible in responding to short-run...
The paper explains the behavior of inflation in Georgia in the post-stabilization period. A long-run equation linking prices to money and the exchange rate, as well as a short-run, dynamic equation for inflation are estimated. The inflation equation is stable, points to a dominant role of the exchange rate in...
This paper discusses an explaination for the costliness of reducing inflation in that inflation expectations are less than perfectly rational. To explore this possibility, the estimate the degree of non-rationality implicit in two survey measures of inflation expectations are derived. It is also found that a structural New Keynesian model...
The Canadian economy is currently in transition from a period of disinflation to one with a very low and relatively stable inflation rate. Against this background, the author asks whether reduced-form parameters should be expected to be invariant to changes in the inflation process. It also explains two empirical issues....
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