The effective Planck mass and the scale of inflation

Observable quantities in cosmology are dimensionless, and therefore independent of the units in which they are measured. This is true of all physical quantities associated with the primordial perturbations that source cosmic microwave background anisotropies such as their amplitude and spectral properties. However, if one were to try and infer an absolute energy scale for inflation—a priori, one of the more immediate corollaries of detecting primordial tensor modes—one necessarily makes reference to a particular choice of units, the natural choice for which is Planck units. In this note, we discuss various aspects of how inferring the energy scale of inflation is complicated by the fact that the effective strength of gravity as seen by inflationary quanta necessarily differs from that seen by gravitational experiments at presently accessible scales. The uncertainty in the former relative to the latter has to do with the unknown spectrum of universally coupled particles between laboratory scales and the putative scale of inflation. These intermediate particles could be in hidden as well as visible sectors or could also be associated with Kaluza–Klein resonances associated with a compactification scale below the scale of inflation. We discuss various implications for cosmological observables.

Inflation Targeting and Output Growth: Evidence from Aggregate European Data

This paper evaluates inflation targeting and assesses its merits by comparing alternative targets in a macroeconomic model. We use European aggregate data to evaluate the performance of alternative policy rules under alternative inflation targets in terms of output losses. We employ two major alternative policy rules, forward-looking and spontaneous adjustment, and three alternative inflation targets, zero percent, two percent, and four percent inflation rates. The simulation findings suggest that forward-looking rules contributed to macroeconomic stability and increase monetary policy credibility. The superiority of a positive inflation target, in terms of output losses, emerges for the aggregate data. The same methodology, when applied to individual countries, however, suggests that country-specific flexible inflation targeting can improve employment prospects in Europe.

Quantile Inferences for Inflation and Its Variability: Does a Threshold Inflation Rate Exist?

Using quantile regressions and cross-sectional data from 152 countries, we examine the relationship between inflation and its variability. We consider two measures of inflation - the mean and median - and three different measures of inflation variability - the standard deviation, coefficient of variation, and median deviation. Using the mean and standard deviation or the median and the median deviation, the results support both the hypothesis that higher inflation creates more inflation variability and that inflation variability raises inflation across quantiles. Moreover, higher quantiles in both cases lead to larger marginal effects of inflation (inflation variability) on inflation variability (inflation). Using the mean and the coefficient of variation, however, the findings largely support no correlation between inflation and its variability. Finally, we also consider whether thresholds for inflation rate or inflation variability exist before finding such positive correlations. We find evidence of thresholds for inflation rates below 3 percent, but mixed results for thresholds for inflation variability.

Inflation targeting in Korea, Indonesia, Thailand, and the Philippines : the impact on business cycle synchronization between each country and the world

This paper empirically analyzes whether and to what extent the adoption of inflation targeting (IT) in Korea, Indonesia, Thailand and the Philippines has affected their business cycle synchronization with the rest of the world. By employing the dynamic conditional correlation (DCC) model developed by Engle (2002), we find that IT in Asia has little effect on international business cycle synchronization and the effect is positive in some of the countries, if any. These findings basically seem to be consistent with the evidence from relevant literature.