Prof. In-Koo Cho, Deconstruction of US Inflation

Prof. In-Koo Cho

Deconstruction of US Inflation  1011-4563-01

Short Description:

Macroeconomic policymaking confronts two challenges. First, policymakers do not know the economy's actual data-generating process (DGP). Second, their beliefs typically feedback to influence the model, which makes DGP endogenous.    Modeling the policy maker as a boundedly rational agent, we analyze the dynamics of US inflation post World War II, and offer a coherent story about the complex dynamics of US inflation within a unified framework of learning and model validation.  Along the way, we examine and reconcile two influential, yet conflicting, views on US inflation by Thomas J. Sargent and Christopher Sims.  

Berglas Building, room  101 

Dates:

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