Sudden demand surges or supply chains snarls will drive prices up quickly. Businesses face two issues when this happens, First, when a price rises sharply, how long will it take for increased supply ...

Donald Trump keeps flipping and flopping on tariffs. Many are scheduled to kick in on Aug. 1, but who knows. Nevertheless, U.S. households and businesses need to gird their loins for the biggest and ...

Exchange rates can appreciate substantially. The U.S. real effective exchange rate (REER) appreciated 34% between July 2011 and September 2023 (see Figure 1) (Note 1). The Swiss REER appreciated 36% ...

This paper studies the idea that investors’ portfolio holdings respond more elastically to price changes at long horizons than short horizons. Using investor trades – changes in portfolios – at ...

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those ...

The elasticity is almost unity for expatriates in the long run and 0.35 in the short run. We interpret low elasticities as indirect evidence of labor market adjustment costs, which could include ...