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Bank:Federal Reserve Bank of Cleveland 

Journal Article
12 Facts about Temporary Urbanists

Urban areas seem to be enjoying a renaissance of sorts due in part to the many young professionals who have moved into central neighborhoods since the 2000s. Many of these young professionals are thought to move back out after they have started families, but the details of these migration patterns are not well-known. I analyze data from the Federal Reserve Bank of New York/Equifax Consumer Credit Panel to answer 12 questions about these temporary urbanists?those who choose to move into an urban neighborhood and spend part of their early adulthood there.
Economic Commentary , Issue May

Journal Article
Have the characteristics of high-earning banks changed? Evidence from Ohio

An analysis of the effects of deregulation on the earnings of Ohio banks in the last decade, finding that the top-performing financial institutions earned even higher returns on assets after deregulation, while the earnings of poorly managed banks deteriorated.
Economic Commentary , Issue Sep

Journal Article
Intervention and the dollar

A study of U.S. intervention in the foreign exchange market between 1984 and 1987, concluding that exchange-rate stability among nations depends on fundamental macroeconomic policies, not intervention.
Economic Commentary , Issue Sep

Journal Article
Tax structure, optimal fiscal policy, and the business cycle

The development of a real business cycle model in which government fiscal variables such as tax rates and public expenditures are endogenous. The authors characterize the "optimal" behavior of these policy variables over the business cycle and relate this behavior to movements in private-sector variables like output, consumption, labor hours, and investment.
Economic Review , Volume 30 , Issue Q IV , Pages 2-14

Conference Paper
Does the location of ideas matter for employment and earnings in the Internet age?

Freeman talked about the development of ideas and their impact on U.S. workers. It used to be the case that the place where new knowledge was created had an advantage in commercializing it. But Freeman argues that modern communications technologies allow new ideas rapid exposure on a world stage, where the ever-growing numbers of technically skilled workers in developing countries stand capable of turning them into profit-making opportunities. Freeman emphasizes the need for policies that foster knowledge creation in areas where the home-field advantage can be maintained. He says that the ...
Proceedings

Speech
Emerging from recession: Implications for growth, inflation, and monetary policy, New York, New York, October 1, 2009

In a speech in New York City, Cleveland Federal Reserve Bank President Sandra Pianalto comments on current economic conditions, explains why she thinks the country's economic recovery will be gradual and bumpy, and gives her thoughts on what this gradual path to recovery may mean for inflation and monetary policy.
Speech , Paper 24

Working Paper
Currency portfolios and nominal exchange rates in a dual currency search economy

The authors analyze a dual-currency search model in which agents may hold multiple units of both currencies. They study equilibria in which the two currencies are identical and equilibria in which the two currencies differ according to the magnitude of the "inflation tax" risk associated with each. When one currency has the right amount of risk, equilibria exist in which the safe currency trades for multiple units of the risky one (pure currency exchange). As a result, the steady state has a distribution of nominal exchange rates. The mean and variance of this distribution typically change ...
Working Papers (Old Series) , Paper 9916

Working Paper
A Theory of Intrinsic Inflation Persistence

We propose a novel theory of intrinsic inflation persistence by introducing trend inflation and variable elasticity of demand in a model with staggered price and wage setting. Under nonzero trend inflation, the variable elasticity generates intrinsic persistence in inflation through a measure of price dispersion stemming from staggered price setting. It also introduces intrinsic persistence in wage inflation under staggered wage setting, which affects price inflation. With the theory we show that inflation exhibits a persistent, hump-shaped response to a monetary policy shock. We also show ...
Working Papers , Paper 19-16

Working Paper
The Effect of Component Disaggregation on Measures of the Median and Trimmed-Mean CPI

For decades, the Federal Reserve Bank of Cleveland (FRBC) has produced median and trimmed-mean consumer price index (CPI) measures. These have proven useful in various contexts, such as forecasting and understanding post-COVID inflation dynamics. Revisions to the FRBC methodology have historically involved increasing the level of disaggregation in the CPI components, which has improved accuracy. Thus, it may seem logical that further disaggregation would continue to enhance its accuracy. However, we theoretically demonstrate that this may not necessarily be the case. We then explore the ...
Working Papers , Paper 24-02

Journal Article
TIPS for safer investing

A look at some of the advantages and disadvantages of Treasury Inflation-Protection Securities, the first U.S. government securities guaranteed to provide riskless, long-term protection against inflation, covering their structure, expected performance against traditional Treasury securities, liquidity concerns, and the claim that they will allow the Treasury to reduce its borrowing costs.
Economic Commentary , Issue Jul

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