Publications

May 2022
Case

Rawbank's Illico Cash: Can 'Fast Money' Overcome Cash Dependency in the DRC?

By: Lauren Cohen and Grace Headinger

Thomas de Dreux-Brézé, the Head of Strategy and Project Management at Rawbank Congo in the Democratic Republic of the Congo (DRC), was perplexed as he reviewed annual adoption rates for the bank’s launch of Illico Cash 2.0. As the bank’s mobile money app, Illico Cash... View Details

Educators

Purchase

1999
Chapter

Excess Capital Flows and the Burden of Inflation in Open Economies

By: M. A. Desai and James R. Hines Jr.

Keywords: Capital; International Finance; Inflation and Deflation; Economic Systems

February 1981 (Revised January 1984)
Case

International Harvester: Purchasing Inflation Offset System

By: Regina E. Herzlinger and Kenneth A. Merchant

March 1983 (Revised March 1988)
Case

American Standard, Inc.: The Inflation Accounting System

By: William J. Bruns Jr. and Julie H. Hertenstein

April 1977
Article

Purchasing Power Gains on Debt: The Effect of Expected and Unexpected Inflation

By: Robert S. Kaplan

Keywords: Borrowing and Debt; Inflation and Deflation

Article

Inflation-Indexed Bonds and the Expectations Hypothesis

By: Carolin E. Pflueger and Luis M. Viceira

This paper empirically analyzes the Expectations Hypothesis (EH) in inflation-indexed (or real) bonds and in nominal bonds in the U.S. and in the U.K. We strongly reject the EH in inflation-indexed bonds and also confirm and update the existing evidence rejecting the... View Details

Keywords: TIPS; Breakeven Inflation; Return Predictability; Bond Risk Premia; Risk Management; Bonds; Financial Liquidity; Inflation and Deflation; United Kingdom; United States

2013
Working Paper

Internet Appendix for "Inflation Bets or Deflation Hedges? The Changing Risks of Nominal Bonds"

By: Adi Sunderam, Luis M. Viceira and John Y. Campbell

March 1983 (Revised June 1988)
Teaching Note

American Standard, Inc.: The Inflation Accounting System, TN

By: William J. Bruns Jr. and Julie H. Hertenstein

Keywords: Accounting; Inflation and Deflation

February 2007
Article

The Persistence of Inflation Versus that of Real Marginal Cost in the New Keynesian Model

By: Julio J. Rotemberg

This note provides an example where the New Keynesian Phillips Curve leads inflation to be substantially more persistent than the output gap. View Details

Keywords: Macroeconomics; Inflation and Deflation; Cost

2013
Article

Inflated Applicants: Attribution Errors in Performance Evaluation by Professionals

By: S. A. Swift, D. Moore, Z. Sharek and F. Gino

When explaining others' behaviors, achievements, and failures, it is common for people to attribute too much influence to disposition and too little influence to structural and situational factors. We examine whether this tendency leads even experienced professionals... View Details

Keywords: Evaluations; Correspondence Bias; Selection Decisions; Attribution; Prejudice and Bias; Selection and Staffing; Decision Choices and Conditions; Performance Evaluation; Cognition and Thinking

07 Feb 2023
Research & Ideas

Supervisor of Sandwiches? More Companies Inflate Titles to Avoid Extra Pay

the study estimates. Cohen’s study emerges as record inflation and chronic staffing shortages collide making compensation a top challenge in human resources. While the trend is most heavily concentrated in... View Details

Keywords: by Scott Van Voorhis

June 2010
Article

Correspondence Bias in Performance Evaluation: Why Grade Inflation Works

By: D. A. Moore, S. A. Swift, Z. S. Sharek and F. Gino

Keywords: Prejudice and Bias; Performance Evaluation; Inflation and Deflation

2017
Report

Dismissed by Degrees: How Degree Inflation Is Undermining U.S. Competitiveness and Hurting America's Middle Class

By: Joseph B. Fuller and Manjari Raman

2024
Working Paper

Fiscal Policy under Convex Supply Curves

By: Shlok Goyal, Avi Lipton and Borui Niklas Zhu

Recent empirical evidence suggests that supply curves are convex. Supply curve convexity is at odds with conventional Phillips curves, which rely on an infinitely elastic underlying supply curve. This paper explores the effect of supply curve convexity on the... View Details

Keywords: Fiscal Stimulus; Fiscal Policy; Inflation; Inflation and Deflation; Macroeconomics; Policy; Mathematical Methods; United States

SSRN

2019
Article

More Amazon Effects: Online Competition and Pricing Behaviors

By: Alberto Cavallo

I study how online competition, with its shrinking margins, algorithmic pricing technologies, and the transparency of the web, can change the pricing behavior of large retailers in the U.S. and affect aggregate inflation dynamics. In particular, I show that in the past... View Details

Keywords: Amazon; Online Prices; Inflation; Uniform Pricing; Price Stickiness; Monetary Economics; Economics; Macroeconomics; Inflation and Deflation; System Shocks; United States

2023
Working Paper

Who Invests in Crypto? Wealth, Financial Constraints, and Risk Attitudes

By: Darren Aiello, Scott R. Baker, Tetyana Balyuk, Marco Di Maggio, Mark J. Johnson and Jason Kotter

We provide a first look into the drivers of household cryptocurrency investing. Analyzing consumer transaction data for millions of U.S. households, we find that, except for high income early adopters, cryptocurrency investors resemble the general population. These... View Details

Keywords: Consumer Finance; Cryptocurrency; Fintech; Inflation; Portfolio Choice; Stimulus; Consumer Behavior; Risk and Uncertainty; Investment

SSRN

June 1988 (Revised July 1989)
Case

John Hancock Mutual Life Insurance Co.: The Inflation Strategy Task Force (A)

1980 was a critical time for John Hancock with high inflation, high interest rates, increased competition, and the desertion of policy holders seeking new investment opportunities. A new lower level (of vice presidents) task force was set up by the executive committee... View Details

Keywords: Strategic Planning; Insurance; Inflation and Deflation; Insurance Industry; United States

Educators

Purchase

2013
Working Paper

Return Predictability in the Treasury Market: Real Rates, Inflation, and Liquidity

By: Carolin E. Pflueger and Luis M. Viceira

Estimating the liquidity differential between inflation-indexed and nominal bond yields, we separately test for time-varying real rate risk premia, inflation risk premia, and liquidity premia in U.S. and U.K. bond markets. We find strong, model independent evidence... View Details

Keywords: Expectations Hypothesis; Term Structure; Real Interest Rate Risk; Inflation Risk; Inflation-Indexed Bonds; Financial Crisis; Inflation and Deflation; Financial Liquidity; Bonds; Investment Return; Risk and Uncertainty; United Kingdom; United States

SSRN

August 2020
Article

Macroeconomic Drivers of Bond and Equity Risks

By: John Y. Campbell, Carolin E. Pflueger and Luis M. Viceira

Our new model of consumption-based habit generates time-varying risk premia on bonds and stocks from loglinear, homoskedastic macroeconomic dynamics. Consumers' first-order condition for the real risk-free bond generates an exactly loglinear consumption Euler equation,... View Details

Keywords: Consumption-based Habit Formation; Consumption Euler Equation; Time-varying Risk Premia; Inflation Dynamics; Bond-stock Correlation; Risk and Uncertainty; Bonds; Macroeconomics