Market Power in Neoclassical Growth Models

My paper with the above title, coauthored with Larry Ball, is now forthcoming in The Review of Economic Studies. You can find the revised version by clicking here.

An Inflation Puzzle

A common story about the recent inflation surge in the United States--especially among members of Team Transitory--is that the surge is largely due to global supply shocks, such as rising energy prices, chip shortages, and various bottlenecks in the wake of the worldwide pandemic. Why then do we not see a similar inflation surge in Japan? There, inflation is running at about the same rate as it was pre-pandemic. See below. (Click on image to enlarge.) I am puzzled.

My Latest

Click here to read my new working paper, Government Debt and Capital Accumulation in an Era of Low Interest Rates.