Search Results - subject:"Inflation Illusion"

Monetary Policy, Inflation Illusion and the Taylor Principle: An Experimental Study

Luhan, Wolfgang; Scharler, Johann - 2013

We develop a simple experimental setting to evaluate the role of the Taylor principle, which holds that the nominal interest rate has to respond more than one-for-one to fluctuations in the inflation rate. In our setting, the average inflation rate fluctuates around the inflation target if the...

Persistent link: https://www.econbiz.de/10010312239

Monetary Policy, Inflation Illusion and the Taylor Principle – An Experimental Study

Luhan, Wolfgang J.; Scharler, Johann - 2013

We develop a simple experimental setting to evaluate the role of the Taylor principle, which holds that the nominal interest rate has to respond more than one-for-one to fluctuations in the inflation rate. In our setting, the average infl ation rate fluctuates around the inflation target if the...

Persistent link: https://www.econbiz.de/10010291042

Monetary Policy, Inflation Illusion and the Taylor Principle: An Experimental Study

Luhan, Wolfgang; Scharler, Johann - Institut für Finanzwissenschaft, Fakultät für … - 2013

Persistent link: https://www.econbiz.de/10010839593

Monetary Policy, Inflation Illusion and the Taylor Principle – An Experimental Study

Luhan, Wolfgang J.; Scharler, Johann - Rheinisch-Westfälisches Institut für … - 2013

Persistent link: https://www.econbiz.de/10010617565

Money illusion and housing frenzies

Brunnermeier, Markus K.; Julliard, Christian - London School of Economics (LSE) - 2006

A reduction in inflation can fuel run-ups in housing prices if people suffer from money illusion. For example, investors who decide whether to rent or buy a house by simply comparing monthly rent and mortgage payments do not take into account that inflation lowers future real mortgage costs. We...

Persistent link: https://www.econbiz.de/10011071404

Mergers during the first and second phase of globalization: Success, insider trading, and the role of regulation

Kling, Gerhard - 2004

supports the inflation illusion hypothesis for the period 1870 to 1914 in Germany but how can one interpret this finding … inflation illusion can also be observed in later period (see Madsen, 2000).Inspiring the Hoffmann (1965) series, the cyclical … interest, nominal share prices should not reflect inflation and inflation illusion is likely. In addition, time series of …

Persistent link: https://www.econbiz.de/10009475337