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Capacity utilization : predictor of inflation.

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dc.contributor.author Wilkes, William en_US
dc.date.accessioned 2014-06-20T17:55:54Z
dc.date.available 2014-06-20T17:55:54Z
dc.date.issued 1998 en_US
dc.identifier.uri http://jewlscholar.mtsu.edu/handle/mtsu/4164
dc.description Adviser: Joachim Zietz. en_US
dc.description.abstract The current challenge confronting the Federal Open Market Committee of the Federal Reserve Bank (FOMC) in achieving price stability requires the facility to forecast changes in the rate of inflation and to implement timely corrective measures before the economy experiences a surge in inflation. The need for prompt and appropriate monetary policy is magnified by the existence of lags between changes in the economy (real or monetary) and price inflation. Forces tending to accelerate inflation may already be in place, but price increases may not have materialized. en_US
dc.description.abstract The purpose of this study is to develop a model comprised of real forces (capacity utilization and other supply/demand proxies) that can be used to predict changes in inflation, thereby, alerting the FOMC of the need to embark on monetary policy aimed at preventing an acceleration of price increases. The model will be examined as to its ability to forecast future inflation using lagged values of the independent variables. The study will also examine the concept of a non-accelerating inflation rate of capacity utilization (NAICU) with respect to its validity as a monetary policy tool. en_US
dc.description.abstract This study finds that capacity utilization plays a significant role in explaining changes in the rate of inflation. However, it would be naive to focus strictly on the NAICU as the sole predictor of inflation rate changes. Ignoring other supply/demand variables identified in this study as major contributors in explaining inflation will result in a suboptimal model of the inflation process. en_US
dc.publisher Middle Tennessee State University en_US
dc.subject.lcsh Inflation (Finance) Economic aspects en_US
dc.subject.lcsh Capital investments en_US
dc.subject.lcsh Economics, General en_US
dc.subject.lcsh Economics, Theory en_US
dc.title Capacity utilization : predictor of inflation. en_US
dc.type Dissertation en_US
dc.thesis.degreelevel Doctoral en_US
dc.thesis.degreegrantor Middle Tennessee State University en_US
dc.description.degree D.A. en_US
dc.contributor.department Economics & Finance en_US


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