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Too few employers offer workers a choice of managed-care plans, which would generate price competition.
Macroeconomists should put more effort into developing theoretical models with alternative mechanisms that generate price stickiness, dispersion, and other imperfections.
Eventually, all but the most extreme optimists agree that such overheating will generate price pressure.Which leads to the most important question in today's debate, and one which does not hinge at all on whether there have been structural economic changes.
Few markets, of course, generate price competition as fierce as in the United States, but European companies face the remorseless necessity of exporting to other national markets or perishing.
These uncertainties could make investors even more nervous and further increase risk premiums.Putting all of this together, it is not clear that it would be beneficial for central banks to express tolerance for faster inflation unless they can generate price increases of the proper speed and magnitude.
That should generate price competition, which in turn should cause lower yields on newly purchased securities.
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The models that generate prices for stock options using just a handful of variables are the simplest case in point.
Private property is essential to a well-functioning social system because it allows that system to generate prices.
The betting is that he will succeed in generating price rises, but of slightly less than 2% (see chart).
That's the conclusion of studies by one economist, John Kwoka of Northeastern University, who found that of the 1,000 mergers of all kinds that he evaluated over the last two decades, at least a third generated price increases in excess of 10%.
Another mechanism for generating price differentials across locations is differentials in location-specific amenities.
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