Publications

01 Sep 2009
News

Consumer Finance Makes HBS Debut

TUFANO: His new consumer finance elective is part of a broader effort to legitimize the field as an important area for research and teaching. Last spring HBS became the first top-ranked U.S. business school to offer a course in consumer finance. Jointly taught by HBS... View Details

Keywords: Roger Thompson; Colleges, Universities, and Professional Schools; Educational Services; Finance

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

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April 1996 (Revised May 2008)
Exercise

Adam Baxter Company/Local 190: 1978 Negotiation, Baxter Management Confidential Information

By: Kathleen L. McGinn and Victoria Medvec

Includes a series of three negotiation exercises portraying management/labor relations at ABC over a period of seven years. ABC, initially a family-owned business, had prided itself on its cooperative relationship with its union, Local 190. With the skyrocketing... View Details

Keywords: Inflation and Deflation; Compensation and Benefits; Wages; Working Conditions; Management; Negotiation Process; Labor and Management Relations

November 2024
Article

Price Discounts and Cheapflation During the Post-Pandemic Inflation Surge

By: Alberto Cavallo and Oleksiy Kryvtsov

We study how within-store price variation changes with inflation, and whether households exploit it to attenuate the inflation burden. We use micro price data for food products sold by 91 large multi-channel retailers in ten countries between 2018 and 2024. Measuring... View Details

Keywords: Macroeconomics; Inflation and Deflation; Price; Consumer Behavior; Personal Finance; Product Positioning

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September 1992 (Revised July 1998)
Case

Germany in the 1990s: Managing Reunification

By: George C. Lodge and James W. Ragsdale

In October 1990, eastern Germany was incorporated into the Federal Republic of Germany. The German people rewarded the architect of these changes, Helmut Kohl, with an enhanced majority in national elections. But only two years later it was hard to remember these heady... View Details

Keywords: Economy; Inflation and Deflation; Central Banking; Interest Rates; Political Elections; Situation or Environment; Integration; Europe; Germany; Italy; United Kingdom

June 2005
Article

Inflation, Openness, and Exchange Rate Regimes: The Quest for Short-Term Commitment

By: Laura Alfaro

This paper further tests Romer's (1993) extension of Kydland and Prescott's (1977) predictions for dynamic-inconsistency problems in open economies. In a panel data set of developed and developing countries from 1973 to 1998, I find that openness does not play a role... View Details

Keywords: Forecasting and Prediction; Economy; Currency Exchange Rate; Developing Countries and Economies; Inflation and Deflation

October 1998 (Revised September 1999)
Case

Brazil Confronts an Interdependent World

By: George C. Lodge and Cate Reavis

Discusses the politics of change and how Brazilian President Fernando Henrique Cardoso, elected in 1994, has fought to promote systemic change in Brazil. While his Real Plan has stabilized inflation and attracted foreign investment, the nation's deficit continues to... View Details

Keywords: Development Economics; Government and Politics; Inflation and Deflation; Foreign Direct Investment; Equality and Inequality; Change; Social Issues; Public Administration Industry; Brazil

April 1996 (Revised May 2008)
Exercise

Adam Baxter Company/Local 190: 1983 Negotiation, Baxter Management Confidential Information

By: Kathleen L. McGinn and Victoria Medvec

Includes a series of three negotiation exercises portraying management/labor relations at ABC over a period of seven years. ABC, initially a family-owned business, had prided itself on its cooperative relationship with its union, Local 190. With the skyrocketing... View Details

Keywords: Inflation and Deflation; Compensation and Benefits; Wages; Working Conditions; Management; Negotiation Process; Labor and Management Relations

June 2003 (Revised July 2003)
Teaching Note

India on the Move (TN)

By: Richard H.K. Vietor

Teaching Note for (9-703-050). View Details

Keywords: Financial Crisis; Adoption; Foreign Direct Investment; Macroeconomics; Trade; Governance Controls; Competition; Inflation and Deflation; Entrepreneurship; India; Pakistan

October 1993 (Revised January 1994)
Supplement

Japan (A), Supplement

By: Bruce R. Scott

In an economy marked by severe inflation, a balance of payments problem, and large investment needs for modernization, the Minister of Finance has been asked to design a remedial program that cannot include borrowing abroad. He does so, and the case describes the... View Details

Keywords: Design; Developing Countries and Economies; Inflation and Deflation; Borrowing and Debt; Policy; Outcome or Result; Problems and Challenges; Programs

September 2014 (Revised May 2015)
Case

The United Kingdom and the Means to Prosperity

By: Laura Alfaro, Lakshmi Iyer and Hilary White

After struggling through the country's longest recession since 2008, the U.K. was expected to grow faster than any other G7 nation in 2014. Analysts wondered whether the return to growth was because, or in spite of, Prime Minister David Cameron's controversial £113... View Details

2009
Other Unpublished Work

Steering Monetary Policy Through Unprecedented Crises

By: David Moss and Cole Bolton

In early April 2008, economic conditions in Europe appeared to be deteriorating on almost all fronts: sales figures were falling, business and consumer confidence were slumping, forecasts for European growth were being revised downward, and inflation was rising. In... View Details

Keywords: Financial Crisis; Inflation and Deflation; Central Banking; Interest Rates; International Finance; Policy; Crisis Management; Europe

December 2010
Article

Altruistic Dynamic Pricing with Customer Regret

By: Julio J. Rotemberg

A model is considered where firms internalize the regret costs that consumers experience when they see an unexpected price change. Regret costs are assumed to be increasing in the size of price changes and this can explain why the size of price increases is less... View Details

Keywords: Cost; Price; Change; Inflation and Deflation; Cost Management; Customers; Practice; Announcements; Forecasting and Prediction

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September 1992 (Revised November 1993)
Supplement

Germany in the 1990s: Managing Reunification, Supplement Two

By: George C. Lodge

Designed to be handed out after discussion of Germany in the 1990s: Managing Reunification and its Supplement. View Details

Keywords: Political Elections; Economy; Situation or Environment; Inflation and Deflation; Interest Rates; Central Banking; Integration; Germany; Italy; United Kingdom; Europe

March 2008 (Revised July 2009)
Case

U.S. Subprime Mortgage Crisis: Policy Reactions (A)

By: Laura Alfaro and Renee Kim

By March 2008, the U.S. Government and the U.S. Federal Reserve Board had taken various policy measures over the last few months to tackle the subprime mortgage crisis that threatened to drag the economy into a recession. The Bush administration approved a fiscal... View Details

Keywords: Financial Crisis; Inflation and Deflation; Central Banking; Mortgages; Policy; Business and Government Relations; United States

May 2004 (Revised November 2005)
Case

Turkey: Securing Stability in a Rough Neighborhood

By: Richard H.K. Vietor and Emily Thompson

After suffering years of volatility and crises, Turkey desperately sought macroeconomic and political stability in an ever-worsening region of the world. In the short term, Turkey had to repay its debt, which amounted to more than 80% of GDP. By January 2004, Turkey... View Details

Keywords: Public Sector; Inflation and Deflation; Macroeconomics; Borrowing and Debt; Banks and Banking; International Finance; Privatization; Religion; Turkey; European Union

January 1997 (Revised March 1997)
Background Note

Note on Money and Monetary Policy

By: David A. Moss and Wyatt C. Wells

Offers a brief overview of economic thinking about the nature of money and about how the central bank can affect the economy through monetary policy. View Details

Keywords: Sovereign Finance; Government Administration; Policy; Central Banking; Money; Inflation and Deflation; Financial Crisis

2010
Chapter

The Euro as a Reserve Currency for Global Investors

By: Luis M. Viceira and Ricardo Gimeno

This article explores the demand for the euro for risk management purposes and the evidence of stock market integration in the euro area. We define a reserve currency as one that investors demand either because it helps them hedge real interest risk and inflation risk,... View Details

Keywords: Volatility; Inflation and Deflation; Capital Markets; Currency; Stocks; Financial Markets; Financing and Loans; Investment Return; Investment Portfolio; Risk Management

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January 1989 (Revised July 1991)
Case

Bank for International Development, Software Case

By: W. Carl Kester and Timothy A. Luehrman

A hypothetical case in which an assistant treasurer of a supranational bank is asked to determine in which currencies it has been cheaper ex post to borrow. An integral part of the case is a Lotus 1-2-3 worksheet containing monthly data on yen and dollar interest... View Details

Keywords: Decisions; Interest Rates; International Finance; Relationships; Currency; Management Analysis, Tools, and Techniques; Analytics and Data Science; Inflation and Deflation