Agenda

17 Ott 2022 12:15

Marco Bassetto (Federal Reserve Bank of Minneapolis) - A Monetary-Fiscal Theory of Sudden Inflations

Meeting Room 1, San Giobbe Economics Campus

Economics Seminars are study seminars held on current research proposals or on studies carried out by eminent international researchers and teachers. They are an opportunity for discussion of new theories, developments, models and debates, focussing on various current economics topics.

Economics Seminars are generally held on Mondays at 12:15 in Meeting Room 1 (Complex A – San Giobbe Economics Campus – map).

Upcoming event:

Marco Bassetto (Federal Reserve Bank of Minneapolis) -  A Monetary-Fiscal Theory of Sudden Inflations (collaboration with David Miller, Federal Reserve Board).

Abstract
This paper provides an information channel as the explanation for sudden inflations.  Consumers saving via nominal government bonds face a choice whether to acquire costly information about future government surpluses.  They trade off the cost of acquiring information about the surpluses that back bond repayment against the benefit of a more informed saving choice.  Through the information channel, small changes in the economic environment can trigger large responses in consumers' behavior and prices. This setting explains why there can be long stretches of time in which government surpluses have large movements while nothing seems to happen to inflation; yet, at some point, something snaps, and a sudden inflation takes off that is strongly responsive to incoming fiscal news.

Lingua

L'evento si terrà in inglese

Organizzatore

Dipartimento di Economia (EcSeminars; CVera)

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