It is commonly believed that a monetary policy that targets the price level reduces the long-term variability of the price level, but only at the cost of increased variability of both inflation and output. We develop a model in which the one-step-ahead variance of output and the price level are...

Recently a great deal of controversy has been generated from the salaries earned by head football coaches in the NCAA. On one level this seems odd since many figures in the world of sports and entertainment earn exceptionally high salaries. However, one important difference in the case of NCAA...

This paper examines the role of seasonal interest-rate changes within a classical model. It shows that the rate of interest is relatively high during seasons in which resources have a relatively high value. Hence seasonal interest-rate variations cause economic actors to reallocate resources...