this research follows two aims in case of the iranian economy. first, study of the presence of inflation persistency, and second, looking for an optimal monetary policy rule. results show that inflation in the economy of iran is persistent, in which, short-term and long-term effects of monetary policy should be considered. for this purpose, a loss function for the central bank with arguments of...

A significant concern for many households is the expense they incur to buy the goods and services that are necessary to maintain a certain standard of living – that is, their ‘cost of living’. The prices of many of these items tend to rise over time, which places upward pressure on the cost of living. The CPI, which measures inflation in prices, is often used to assess changes in the cost of li...

On October 6, 1979, the Federal Open Market Committee of the Federal Reserve System embarked on an aggressive policy to lower the inflation rate, which then stood near 12 percent. That effort succeeded: By the mid-1980s, the rate of change in the Consumer Price Index (CPI) was reduced to less than 4 percent on a three-year moving-average basis, as shown in figure 1. The commonly reported measur...

This paper brings together several strands of the inflation literature. Specifically, this paper uses the forecast from a random walk model of inflation as a benchmark to test and compare the forecast performance of several alternatives including the Greenbook forecast by the Fed staff, the Survey of Professional Forecasters median forecast, lagged CPI inflation minus food and energy, lagged CP...

This paper argues that inflation-targeting central banks should announce explicit loss function with numerical relative weights on output-gap stabilization and use and announce optimal time-varying instrument-rate paths and corresponding inflation and output-gap forecasts. Simple voting procedures for forming the Monetary Policy Committee’s aggregate loss function and time-varying instrument-ra...

OBJECTIVE To provide guidance on selecting the most appropriate price index for adjusting health expenditures or costs for inflation. DATA SOURCES Major price index series produced by federal statistical agencies. STUDY DESIGN We compare the key characteristics of each index and develop suggestions on specific indexes to use in many common situations and general guidance in others. DATA C...

Inflation for retirees is different from, and mostly higher than, the widely quoted macroeconomic inflation rate for the population. For example in the U.S. the Consumer Price Index (CPI) has a lesser known cousin called the CPI-E (for the elderly) in which the subcomponent weights are based on the consumption patterns of Americans above the age of 62. This suggests that Inflation Linked Bond F...

the main goal of this study was to investigate the way of affecting of water in production of cucumber. from aspect of econometrics, mutual relationships of production function and expenses have been analyzed in which translog cost function has been used. this function has been estimated using the conditional input demand functions, the shefard theorem, chemical fertilizer, animal fertilizer, l...

This paper emphasizes that it is crucial to identify the proper specification of money demand as well as the appropriate monetary aggregate to find the exact welfare cost of inflation. The econometric test results obtained from the nonlinear form of money demand with Box–Cox restriction indicate that not the semi-logarithmic form but the double-log form with constant elasticity of less than one...