Related papers: Interest Rates and Inflation
This article is an extension of the work of one of us (Coopersmith, 2011) in deriving the relationship between certain interest rates and the inflation rate of a two component economic system. We use the well-known Fisher relation between…
In economic studies and popular media, interest rates are routinely cited as a major factor behind commodity price fluctuations. At the same time, the transmission channels are far from transparent, leading to long-running debates on the…
This paper addresses the structure and dynamics of an open market economy and its relations with the real interest rate. In this respect, the paper is situated within a broad conventional literature. However, it departs from the standard…
A model of quintessential inflation is presented, which manages to achieve the requirements of both inflation and quintessence with natural values of the mass-scales and parameters.
This article contains a concise review of the theory of inflation. We discuss its main theoretical aspects as well as its observational predictions. We also explain how the most recent astrophysical observations constrain the inflationary…
The article presents calculations that prove practical importance of the earlier derived theoretical relationship between the interest rate on the interbank credit market, volume of investment and the quantity of securities tradable on the…
Empirical evidence suggests that there is little to no correlation between the rate of inflation and the size of price change. Economists have hitherto taken this to mean that monetary shocks do not generate much deviation in relative…
We develop a medium-size semi-structural time series model of inflation dynamics that is consistent with the view - often expressed by central banks - that three components are important: a trend anchored by long-run expectations, a…
A brief review of inflation is presented. After having demonstrated the generality of the inflationary mechanism, the emphasize is put on its simplest realization, namely the single field slow-roll inflationary scenario. Then, it is shown…
Planning to explore the beginning of the Universe? A lightweight introductory guide to the theory of Inflation.
We calibrate and test various variants of field theory models of the interest rate with data from eurodollars futures. A model based on a simple psychological factor are seen to provide the best fit to the market. We make a model…
Financial decisions are the decisions that managers take with regard to the finances of a company. This article aims to examine and explain the effect of interest rates on economic and financial decisions such as investment, funding, and…
We consider the spectrum of primordial fluctuations produced by inflationary models where the inflaton potential is the sum of two exponential terms. A wide range of spectra result, with the only constraint being that the scalar spectrum…
This article aims to present an elementary analytical solution to the question of the formation of a structure of differentiation of rates of return in a classical gravitation model and in a model of the dynamics of price-wage spirals.
This short note aims to introduce a rule which admits to compute %any time rate of interest in any time per any time, rate of inflation per any time in any moment, if the rate of interest or the rate of inflation by unity of time is an…
We formulate a forward inflation index model with multi-factor volatility structure featuring a parametric form that allows calibration to correlations between indices of different tenors observed in the market. Assuming the nominal…
These lecture notes have been written for a short introductory course on the status of inflation after Planck and BICEP2, given at the Xth Modave School of Mathematical Physics. The first objective is to give an overview of the theory of…
Dynamical models of inflation are given with composite inflatons by means of massive supersymmetric gauge theory. Nearly flat directions and stable massive ones in the potential are identified and slow-roll during inflation is examined.…
The contributions of this paper are twofold: we define and investigate the properties of a short rate model driven by a general Gaussian Volterra process and, after defining precisely a notion of convexity adjustment, derive explicit…
This note makes a self-contained exposition of the basic facts of big bang cosmology as they relate to inflation. The fundamental problems with that model are then explored. A quartic scalar potential model of inflation is evaluated which…