A conference on price stability
A discussion of six papers presented at the Federal Reserve Bank of Cleveland's Conference on Price Stability in November 1990, focusing on how recent developments in macroeconomic research have changed perceptions about optimal inflation policy.
Understanding the fiscal theory of the price level
Price stability is an important goal of public policy. To reach this goal, two key questions must be addressed: How can price stability be achieved? And, how much price stability is desirable? The authors review the fiscal theory of the price level, with special emphasis on its implications for the feasibility and desirability of price stability.
Recent behavior of velocity: alternative measures of money
An examination of the relationship between velocity and interest rates for two alternative measures of money, and an analysis of the effects of thrift restructuring on money demand.
Why a rule for stable prices may dominate a rule for zero inflation
An analysis of how a rule for monetary policy specifying a stable price level may dominate a rule for zero inflation with price-level drift, even in the case where, for purely economic reasons, an inflation rule is preferred.
Beneficial \"firm runs\"
The author argues that runs, which are generally considered undesirable, also have a beneficial effect--improving lenders' monitoring incentives. Lenders' ability to run on the firm helps control its moral hazard problem, while the first-come, first-served aspect of asset distribution keeps lenders from wanting to free ride on the monitoring efforts of others.
Airline hubs: a study of determining factors & effects
A study of the determinants that influence where airlines establish hubs in the hub-and-spoke networks that developed in the industry, with identification of the quantitative effects of these determinants.
Comparing inflation expectations of households and economists
Stochastic interest rates in the aggregate life cycle of permanent income cum rational expectations model
An estimation of a life cycle cum rational expectations model that allows for uncertain future interest rates. The results show that the model is strongly rejected using post World War II U.S. data.
The collapse in gold prices: a new perspective
Using a gold-price model that depends heavily on government gold supplies, the author attempts to explain gold price movements since 1981.
The impact of regional difference in unionism on employment
A study of whether changes in unionism affect the aggregate level of employment in the economy and, in particular, whether an individual who lives in an SMSA where unions are weak is more likely to be employed than an individual who lives in an area where unions are strong.