Inflation and Deflation: Articles, Research, & Case Studies
Inflation and Deflation. Central Banks Missed Inflation Red Flags. This Pricing Model Could Help. The steep inflation that plagued the economy after the COVID-19 pandemic took many economists by surprise. But research by Alberto Cavallo suggests that a different method of tracking prices—a real-time model—could predict future surges better.
Case Study: Should a Dollar Store Raise Prices to Keep Up with Inflation?
In this fictional case, managers face inflationary pressures and must decide whether and how to increase prices. With a brand heritage and position tied closely to one dollar, brand equity is at risk if the company moves off of its traditional $1.00 price point.
PDF RESEARCH BRIEF • FEBRUARY 2024 What Drives Inflation? Lessons from
the case. The argument is hard to analyze through the lens of the traditional New Keynesian framework, on which economists rely to study inflation dynamics, because this framework features an oversimplified model of production with just a single representative industry. That may work fine when the economy is
Impact of Inflation by Household Income
Summary: We estimate that inflation in 2021 will require the average U.S. household to spend around $3,500 more in 2021 to achieve the same level of consumption of goods and services as in recent previous years (2019 or 2020). Moreover, we estimate that lower-income households spend more of their budget on goods and services that have been more impacted by inflation.
Research and Insights on Inflation
Inflation is the rate of increase in the prices of goods and services in an economy over a specified time period. Stable and moderate levels of inflation are a natural part of a healthy, expanding economy. Inflation that is too high, too low, or deflationary typically reflects imbalances in the economy that can cause longer-term economic ...
What Drives Inflation? Lessons from Disaggregated Price Data
For economists, this is not obviously the case. The argument is hard to analyze through the lens of the traditional New Keynesian framework, on which economists rely to study inflation dynamics, because this framework features an oversimplified model of production with just a single representative industry.
Center for Inflation Research
The Cleveland Fed's Center for Inflation Research is the hub for "all things inflation," providing a combination of research, analyses and data, background and commentary, and an annual conference series dedicated to inflation. ... research, and analysis on inflationary trends from the Center, and find out about upcoming inflation-related ...
PDF How to Beat Inflation: A US Case Study
consistent the inflation-hedging coverage is over shorter and more realistic time periods. In our analysi. focussed mainly on how persistent the beta is over rolling three-year time horizons.6". Overall, our analysis shows that no single asset constitutes a perfect inflation hedge."Figure 6 s.
What is inflation: The causes and impact
Get to know and directly engage with senior McKinsey experts on inflation. Ondrej Burkacky is a senior partner in McKinsey's Munich office, Axel Karlsson is a senior partner in the Stockholm office, Fernando Perez is a senior partner in the Miami office, Emily Reasor is a senior partner in the Denver office, and Daniel Swan is a senior partner in the Stamford, Connecticut, office.
Inflation Targeting and Revisions to Inflation Data: A Case Study with
This potential problem is the main focus of this Research Rap Special Report. We examine the potential severity of this problem by considering how revisions to past PCE-based inflation data have affected the relationship between inflation and a hypothetical target. We find that initially released data tend to be revised upward and that these ...
Putting Recent Inflation in Historical Context
Inflation Surprises. ... While the analysis in this article establishes that the April 2021 inflation report is one of the highest inflation readings since the Fed instituted inflation targeting in the mid-1990s, there are other factors at play. As inflation is measured as the percentage change in the price of a basket of goods from the prior ...
CaPTER INFLATION SCARES
Policy implications: Selected case studies comple-ment the statistical analysis and confirm that persistent "inflation scares" could lead to higher inflation expec-tations. While strong, sustained policy action was often needed to bring down inflation and inflation expec-tations in the past, these actions were accompanied
Economic development and inflation: a theoretical and empirical analysis
This paper studies the relation between inflation and economic development. The literature is largely silent regarding both the theoretical and empirical perspectives that undeveloped countries endure higher average inflation than developed economies. We present a simple theoretical model linking the inflation phenomenon to the tradition of ...
Full article: Measuring the effects of inflation and inflation
From the first group of papers, we can single out the study of Apergis (Citation 2005), who explored empirically the connection between inflation uncertainty and economic growth via panel data analysis that includes OECD economies in relatively long time period from 1969 to 1999. He concluded that inflation uncertainty has an adverse impact on ...
Empirical analysis of the relationship between openness and inflation
Earlier empirical studies carried out on the relationship between openness and inflation have focused mainly on long run effects without considering the short run dynamics. However, this study looked at both the short run and long run relationship between openness and inflation for 25 countries in Sub-Saharan Africa (SSA) using an annual data spanning from 1985 to 2017. The Autoregressive ...
Inflation and Companies' Performance: A Cross-Sectional Analysis
A Case Study of Inflation and Financial Reporting in Developing Economy, 1 (8). Bloch, H. and Olive, M. (2001), Pricing over the cycle, Review of Industial O rganizaition, 19, 99-
Money supply, inflation and output: an empirically comparative analysis
Through empirical evidence, the study demonstrates that the relationship between money supply, inflation and output is still true in the case of transition economies. The law of the market is correct, though the orientation of certain market economies is different from that of developed countries with a long-standing market economy.
PDF Understanding Inflation in India
Worries grew as the inflation rate (measured as the twelve-month change in the consumer price index) rose from 3.7% to 12.1% over 2001-2010. The inflation rate has since fallen to 5.2% in early 2015, leading to a debate about whether this moderation is likely to endure or inflation will rise again.
PDF The Impact of Inflation on Economic Growth: a Case Study of Sudan
Sudan experienced inflation for a 12-month moving average between 2016 and 2020, with total inflation of 25.3 percent in 2016 following the depreciation of the Sudanese pound and in 2020, the GDP was 36.4 percent, with a comparable double-digit GDP growth rate of 11.2 percent in 2016 and 27.08 percent in 2020.
Inflation targeting and price behaviour: evidence from India
As inflation increases, the frequency of price decreases should fall, and frequency of price increases should increase (Gagnon, 2009; Nakamura et al., 2018). In this paper, taking the case of CPI prices in India, we study the implications of inflation targeting on this aspect of price behaviour.
Causes, Measurement, Problems and Counter Measures
Knowing Inflation By inflation one generally means rise in prices. To be more correct inflation is persistent rise in the general price level rather than a once-for-all rise in it, while deflation is persistent falling price. A situation is described as inflationary when either the prices or the supply of money are rising, but in practice both will rise together. These days economies of all ...
Investigating Stock Prediction Using LSTM Networks and Sentiment
The investigation focused on the prediction of stock prices amidst significant macroeconomic and geopolitical volatility, particularly targeting North-American and European banks in 2022 — a year marked by intense economic shocks, including inflation, geopolitical tensions, and supply chain disruptions. A multidimensional approach was employed, integrating advanced Artificial Intelligence ...
A STUDY ON INFLATION IN INDIA: CAUSES AND CONSEQUENCES
on average. Also, the RBI forecasts 6.8% real GDP growth for 2022-2023 and 7.1% for Q1 2023-2024. The future course of in ation is heavily in uenced by the cost of domestic goods like ...
The 2024 Trump Campaign Policy Proposals: Budgetary, Economic and
The 2024 Trump presidential campaign has endorsed several tax-related policy proposals. The Trump campaign supports extending the expiring provisions of the 2017 Tax Cuts and Jobs Act (TCJA) and recommends additional reductions in the corporate tax rate to 15 percent.In addition, the Trump campaign favors eliminating income taxes on Social Security benefits.
APA Technologies (C): A Potential Partnership
It presents the founders' analysis of the risks and benefits, reflecting the complexities of ethical decision-making in a competitive business landscape. Additionally, the case study delves into strategic challenges such as managing financial strains, navigating market penetration, and considering partnerships. ... an automatic tire inflation ...
Exploring the impact of business analysis on corporate strategy: A case
Adequate investment in business analysis would initiate market buoyancy and increase brand sustainable growth, as revealed in the case studies and statistics highlighted. The future of business analysis in Nigeria beams brightly; hence, it becomes an urgent course for business owners to adopt and business analysts to stand firm in the wake of ...
Evaluation of the New York City COVID-19 case investigation and contact
New York City (NYC) was the first COVID-19 epicenter in the United States and home to one of the country's largest contact tracing programs, NYC Test & Trace (T2). Understanding points of attrition along the stages of program implementation and follow-up can inform contact tracing efforts for future epidemics or pandemics. The objective of this study was to evaluate the completeness and ...
Comprehensive assessment of current municipal solid waste ...
Chennai city has implemented numerous strategies and plans to effectively manage the municipal solid waste by the municipal corporation. One of the prime strategy is the establishment of public-private partnership schemes, which play a crucial role in enhancing waste management practices. This case study focus to assess the conservancy operations carried out by multiple stakeholders in order ...
COMMENTS
Inflation and Deflation. Central Banks Missed Inflation Red Flags. This Pricing Model Could Help. The steep inflation that plagued the economy after the COVID-19 pandemic took many economists by surprise. But research by Alberto Cavallo suggests that a different method of tracking prices—a real-time model—could predict future surges better.
In this fictional case, managers face inflationary pressures and must decide whether and how to increase prices. With a brand heritage and position tied closely to one dollar, brand equity is at risk if the company moves off of its traditional $1.00 price point.
the case. The argument is hard to analyze through the lens of the traditional New Keynesian framework, on which economists rely to study inflation dynamics, because this framework features an oversimplified model of production with just a single representative industry. That may work fine when the economy is
Summary: We estimate that inflation in 2021 will require the average U.S. household to spend around $3,500 more in 2021 to achieve the same level of consumption of goods and services as in recent previous years (2019 or 2020). Moreover, we estimate that lower-income households spend more of their budget on goods and services that have been more impacted by inflation.
Inflation is the rate of increase in the prices of goods and services in an economy over a specified time period. Stable and moderate levels of inflation are a natural part of a healthy, expanding economy. Inflation that is too high, too low, or deflationary typically reflects imbalances in the economy that can cause longer-term economic ...
For economists, this is not obviously the case. The argument is hard to analyze through the lens of the traditional New Keynesian framework, on which economists rely to study inflation dynamics, because this framework features an oversimplified model of production with just a single representative industry.
The Cleveland Fed's Center for Inflation Research is the hub for "all things inflation," providing a combination of research, analyses and data, background and commentary, and an annual conference series dedicated to inflation. ... research, and analysis on inflationary trends from the Center, and find out about upcoming inflation-related ...
consistent the inflation-hedging coverage is over shorter and more realistic time periods. In our analysi. focussed mainly on how persistent the beta is over rolling three-year time horizons.6". Overall, our analysis shows that no single asset constitutes a perfect inflation hedge."Figure 6 s.
Get to know and directly engage with senior McKinsey experts on inflation. Ondrej Burkacky is a senior partner in McKinsey's Munich office, Axel Karlsson is a senior partner in the Stockholm office, Fernando Perez is a senior partner in the Miami office, Emily Reasor is a senior partner in the Denver office, and Daniel Swan is a senior partner in the Stamford, Connecticut, office.
This potential problem is the main focus of this Research Rap Special Report. We examine the potential severity of this problem by considering how revisions to past PCE-based inflation data have affected the relationship between inflation and a hypothetical target. We find that initially released data tend to be revised upward and that these ...
Inflation Surprises. ... While the analysis in this article establishes that the April 2021 inflation report is one of the highest inflation readings since the Fed instituted inflation targeting in the mid-1990s, there are other factors at play. As inflation is measured as the percentage change in the price of a basket of goods from the prior ...
Policy implications: Selected case studies comple-ment the statistical analysis and confirm that persistent "inflation scares" could lead to higher inflation expec-tations. While strong, sustained policy action was often needed to bring down inflation and inflation expec-tations in the past, these actions were accompanied
This paper studies the relation between inflation and economic development. The literature is largely silent regarding both the theoretical and empirical perspectives that undeveloped countries endure higher average inflation than developed economies. We present a simple theoretical model linking the inflation phenomenon to the tradition of ...
From the first group of papers, we can single out the study of Apergis (Citation 2005), who explored empirically the connection between inflation uncertainty and economic growth via panel data analysis that includes OECD economies in relatively long time period from 1969 to 1999. He concluded that inflation uncertainty has an adverse impact on ...
Earlier empirical studies carried out on the relationship between openness and inflation have focused mainly on long run effects without considering the short run dynamics. However, this study looked at both the short run and long run relationship between openness and inflation for 25 countries in Sub-Saharan Africa (SSA) using an annual data spanning from 1985 to 2017. The Autoregressive ...
A Case Study of Inflation and Financial Reporting in Developing Economy, 1 (8). Bloch, H. and Olive, M. (2001), Pricing over the cycle, Review of Industial O rganizaition, 19, 99-
Through empirical evidence, the study demonstrates that the relationship between money supply, inflation and output is still true in the case of transition economies. The law of the market is correct, though the orientation of certain market economies is different from that of developed countries with a long-standing market economy.
Worries grew as the inflation rate (measured as the twelve-month change in the consumer price index) rose from 3.7% to 12.1% over 2001-2010. The inflation rate has since fallen to 5.2% in early 2015, leading to a debate about whether this moderation is likely to endure or inflation will rise again.
Sudan experienced inflation for a 12-month moving average between 2016 and 2020, with total inflation of 25.3 percent in 2016 following the depreciation of the Sudanese pound and in 2020, the GDP was 36.4 percent, with a comparable double-digit GDP growth rate of 11.2 percent in 2016 and 27.08 percent in 2020.
As inflation increases, the frequency of price decreases should fall, and frequency of price increases should increase (Gagnon, 2009; Nakamura et al., 2018). In this paper, taking the case of CPI prices in India, we study the implications of inflation targeting on this aspect of price behaviour.
Knowing Inflation By inflation one generally means rise in prices. To be more correct inflation is persistent rise in the general price level rather than a once-for-all rise in it, while deflation is persistent falling price. A situation is described as inflationary when either the prices or the supply of money are rising, but in practice both will rise together. These days economies of all ...
The investigation focused on the prediction of stock prices amidst significant macroeconomic and geopolitical volatility, particularly targeting North-American and European banks in 2022 — a year marked by intense economic shocks, including inflation, geopolitical tensions, and supply chain disruptions. A multidimensional approach was employed, integrating advanced Artificial Intelligence ...
on average. Also, the RBI forecasts 6.8% real GDP growth for 2022-2023 and 7.1% for Q1 2023-2024. The future course of in ation is heavily in uenced by the cost of domestic goods like ...
The 2024 Trump presidential campaign has endorsed several tax-related policy proposals. The Trump campaign supports extending the expiring provisions of the 2017 Tax Cuts and Jobs Act (TCJA) and recommends additional reductions in the corporate tax rate to 15 percent.In addition, the Trump campaign favors eliminating income taxes on Social Security benefits.
It presents the founders' analysis of the risks and benefits, reflecting the complexities of ethical decision-making in a competitive business landscape. Additionally, the case study delves into strategic challenges such as managing financial strains, navigating market penetration, and considering partnerships. ... an automatic tire inflation ...
Adequate investment in business analysis would initiate market buoyancy and increase brand sustainable growth, as revealed in the case studies and statistics highlighted. The future of business analysis in Nigeria beams brightly; hence, it becomes an urgent course for business owners to adopt and business analysts to stand firm in the wake of ...
New York City (NYC) was the first COVID-19 epicenter in the United States and home to one of the country's largest contact tracing programs, NYC Test & Trace (T2). Understanding points of attrition along the stages of program implementation and follow-up can inform contact tracing efforts for future epidemics or pandemics. The objective of this study was to evaluate the completeness and ...
Chennai city has implemented numerous strategies and plans to effectively manage the municipal solid waste by the municipal corporation. One of the prime strategy is the establishment of public-private partnership schemes, which play a crucial role in enhancing waste management practices. This case study focus to assess the conservancy operations carried out by multiple stakeholders in order ...