4,056 research outputs found

    Inflation dynamics: a cross-country investigation

    Get PDF
    We document that "persistent and lagged" inflation (with respect to output) is a world-wide phenomenon in that these short-run inflation dynamics are highly synchronized across countries. In particular, the average cross-country correlation of inflation is significantly and systematically stronger than that of output, while the cross-country correlation of money growth is essentially zero. We investigate whether standard monetary models driven by monetary shocks are consistent with the empirical facts. We find that neither the new Keynesian sticky-price model nor the sticky-information model can fully explain the data. An independent contribution of the paper is to provide a simple solution technique for solving general equilibrium models with sticky information. ; Earlier title: Inflation and money: a puzzleMoney ; Inflation (Finance)

    Another look at sticky prices and output persistence

    Get PDF
    Price rigidity is the key mechanism for propagating business cycles in traditional Keynesian theory. Yet the New Keynesian literature has failed to show that sticky prices by themselves can effectively propagate business cycles in general equilibrium. We show that price rigidity in fact can (by itself) give rise to a strong propagation mechanism of the business cycle in standard New Keynesian models, provided that investment is also subject to a cash-in-advance constraint. In particular, we show that reasonable price stickiness can generate highly persistent, hump-shaped movements in output, investment and employment in response to either monetary or non-monetary shocks, even if investment is only partially cash-in-advance constrained. Hence, whether or not price rigidity is responsible for output persistence (and the business cycle in general) may not be a theoretical question, but an empirical one.Prices ; Business cycles

    Another Look at Sticky Prices and Output Persistence

    Get PDF
    Price rigidity is the key mechanism for propagating business cycles in traditional Keynesian theory. Yet the New Keynesian literature has failed to show that sticky prices by itself can effectively propagate business cycles in general equilibrium. This situation may be a direct consequence of the notion that money-in-utility (MIU) and cash-in-advance (CIA) are equivalent mechanisms for generating money demand. They are not. We show that price rigidity in fact can (by itself) give rise to a powerful propagation mechanism of the business cycle under CIA constraint in standard New Keynesian general equilibrium models. In particular, we show that reasonable price stickiness can generate highly persistent, hump-shaped movements in output, investment and employment in response to either monetary or non-monetary shocks. Hence, whether or not price rigidity is responsible for output persistence (and the business cycle in general) is not a theoretical question, but an empirical one.

    Solving linear difference systems with lagged expectations by a method of undetermined coefficients

    Get PDF
    This paper proposes a solution method to solve linear difference models with lagged expectations. Variables with lagged expectations expand the model's state space greatly when N is large; and getting the system into a canonical form solvable by the traditional methods involves substantial manual work (e.g., arranging the state vector and the associated coefficient matrices to accommodate variables with lagged expectations), which is prone to human errors. Our method avoids the need of expanding the state space of the system and shifts the burden of analysis from the individual economist/model solver toward the computer. Hence it can be a very useful tool in practice, especially in testing and estimating economics models with a high order of lagged expectations. Examples are provided to demonstrate the usefulness of the method. We also discuss the implications of lagged expectations on the equilibrium properties of indeterminate DSGE models, such as the serial correlation properties of sunspots shocks in these models.Monetary policy ; Macroeconomics

    Topological-Fermi-Liquid to Quantum-Hall-Liquid Transitions: pp-Band and dd-Band Fermions in a Magnetic Field

    Full text link
    We find that in a multi-orbital system with intraorbital and interorbital hopping integrals, the Hall conductance exhibits various topological quantum phase transitions (QPTs) induced by on-site orbital polarization: integer quantum Hall (IQH) plateau transitions, and topological Fermi liquid to IQH transitions. Such topological QPTs are demonstrated in two systems: a pp-band spinless fermionic system realizable with ultracold atoms in optical lattice, and a dd-band spinful fermionic system closely related to giant orbital Hall effects in transition metals and their compounds.Comment: 4 pages, 4 figure

    Tuning Kinetic Magnetism of Strongly Correlated Electrons via Staggered Flux

    Full text link
    We explore the kinetic magnetism of the infinite-UU repulsive Hubbard models at low hole densities on various lattices with nearest-neighbor hopping integrals modulated by a staggered magnetic flux ±ϕ\pm\phi. Tuning ϕ\phi from 0 to π\pi makes the ground state (GS) change from a Nagaoka-type ferromagnetic state to a Haerter-Shastry-type antiferromagnetic state at a critical ϕc\phi_c, with both states being of kinetic origin. Intra-plaquette spin correlation, as well as the GS energy, signals such a quantum criticality. This tunable kinetic magnetism is generic, and appears in chains, ladders and two-dimensional lattices with squares or triangles as elementary constituents.Comment: 4 pages, 5 figures, 1 tabl

    Modified evolution of stellar binaries from supermassive black hole binaries

    Full text link
    The evolution of main sequence binaries resided in the galactic centre is influenced a lot by the central super massive black hole (SMBH). Due to this perturbation, the stars in a dense environment are likely to experience mergers or collisions through secular or non-secular interactions. In this work, we study the dynamics of the stellar binaries at galactic center, perturbed by another distant SMBH. Geometrically, such a four-body system is supposed to be decomposed into the inner triple (SMBH-star-star) and the outer triple (SMBH-stellar binary-SMBH). We survey the parameter space and determine the criteria analytically for the stellar mergers and the tidal disruption events (TDEs). For a relative distant and equal masses SMBH binary, the stars have more opportunities to merge as a result from the Lidov-Kozai(LK) oscillations in the inner triple. With a sample of tight stellar binaries, our numerical experiments reveal that a significant fraction of the binaries, ~70 per cent, experience merger eventually. Whereas the majority of the stellar TDEs are likely to occur at a close periapses to the SMBH, induced by the outer Kozai effect. The tidal disruptions are found numerically as many as ~10 per cent for a close SMBH binary that is enhanced significantly than the one without the external SMBH. These effects require the outer perturber to have an inclined orbit (>=40 degree) relatively to the inner orbital plane and may lead to a burst of the extremely astronomical events associated with the detection of the SMBH binary.Comment: 12 pages, 9 figures, MNRAS in pres
    corecore