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Full-Text Articles in Economics
Profit Shares And Cost-Push Inflation: Examining The Distributional Nature Of U.S. Inflation And The Effectiveness Of Monetary Policy, Devin Herbinger
Profit Shares And Cost-Push Inflation: Examining The Distributional Nature Of U.S. Inflation And The Effectiveness Of Monetary Policy, Devin Herbinger
Economics Student Theses and Capstone Projects
The sharp increase in post-pandemic inflation coincided with a profit explosion characterized by a growing share of profit in output. This paper argues that the record profit share in the nonfinancial corporate sector entails a redistribution of income against real wages due to the current institutional and structural conditions of the U.S. economy. Using profit share as a proxy for markups, the results of this paper highlight the macroeconomic implications of excessive profitability in the face of a global exogenous shock. Chiefly, rising profit share correlates with accelerating CPI inflation from 2021-22. Moreover, this surge in profit share occurred when …
Interest Rate Setting Behavior In The Philippines, Inigo Ugarte
Interest Rate Setting Behavior In The Philippines, Inigo Ugarte
Economics Student Theses and Capstone Projects
This paper examines the recent conduct of monetary policy in the Philippines and the Bangko Sentral ng Pilipinas’ (BSP) interest rate setting behavior. In this paper, I use a standard open economy reaction function to see whether the BSP reacts more to changes in the inflation rate, exchange rate, and or the output gap. I find that in the Philippines, the interest rate responds strongly to exchange rates. Furthermore, interest rates are less consistently explained by inflation and more accurately explained by exchange rates. This tends to suggest that the BSP goes against its inflation targeting strategy and supports a …