THE EFFECT OF LABOUR SHARE ON THE NATURAL RATE OF INTEREST: SOME EMPIRICAL EVIDENCE

Standard estimations of Taylor.s (1993) monetary policy rule assume that the natural real rate of interest can be regarded as constant. By contrast, based on Mankiew (2000) theory of Savers and Spenders, we argue that the natural rate is related to the distribution of income between the two types of agents. We show evidence from the U.S., based on a respecication of the Taylor rule proposed by Clarida et al. (2000), that the natural rate of is positively in.uenced by the long-run movements of the labour share in the national income. As the labour share has been falling since 1980s, our results indicate that the natural real interest rate fell from around 6% to around 2% in the beginnings of our decade.

The bar derived category of a curved dg algebra

Curved A-infinity algebras appear in nature as deformations of dg algebras. We develop the basic theory of curved A-infinity algebras and, in particular, curved dg algebras. We investigate their link with a suitable class of dg coalgebras via the bar construction and produce Quillen model structures on their module categories. We define the analogue of the relative derived category for a curved dg algebra.Comment: 38 pages, with figures, corrected typos. To appear in the Journal of Pure and Applied Algebr