Bøger af Brian Sack

This paper derives a measure of inflation compensation from the yields of a Treasury inflation-indexed security and a portfolio of STRIPS that has similar liquidity and duration as the indexed security. This measure can be used as a proxy for inflation expectations if the inflation risk premium is small. The calculated measure suggests that the rate of inflation expected over the next ten years fell from just under 3% in mid-1997 to just under 1 3/4% by early 1999, before rising back to about 2 1/2% by the beginning of 2000. This variation is more extensive than would have been expected from a simple model of inflation dynamics or from a survey measure of long-run inflation expectations.

In the form of letters written to his son, Brian Sack gets right to the heart of what ultimately matters most. While some insights might seem obvious (high school is probably going to suck), others are refreshingly unconventional, and all are presented with a wit that is self-deprecating, sharp, and addictive.