Showing 1 - 7 of 7
Persistent link: https://www.econbiz.de/10010480414
We develop a tractable dynamic general equilibrium model of oligopolistic competition with a continuum of heterogeneous industries. Industries are exposed to aggregate and industry-specific productivity shocks. Firms in each industry set value-maximizing state-contingent markups, taking as given...
Persistent link: https://www.econbiz.de/10013051129
We show theoretically that inflation disagreement drives a wedge between real and nominal yields and raises their levels and volatilities. We demonstrate empirically that an inflation disagreement increase of one standard deviation raises real and nominal yields and their volatilities,...
Persistent link: https://www.econbiz.de/10012970596
Persistent link: https://www.econbiz.de/10011968936
Persistent link: https://www.econbiz.de/10011788857
We show that inflation disagreement, not just expected inflation, has an impact on nominal interest rates. In contrast to expected inflation, which mainly affects the wedge between real and nominal yields, inflation disagreement affects nominal yields predominantly through its impact on the real...
Persistent link: https://www.econbiz.de/10012857289
We develop a dynamic general equilibrium model with many different industries, in which firms set prices strategically in product markets. Our approach extends previous literature by endogenizing the market price of risk and allowing for more general risk structures. General equilibrium in the...
Persistent link: https://www.econbiz.de/10013067082