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Amador, Manuel; Bianchi, Javier - National Bureau of Economic Research - 2023

drops can be a useful stabilization tool during a liquidity trap. With commitment, even with balance sheet constraints …

Persistent link: https://www.econbiz.de/10014247967

Labor Markets and Monetary Policy : A New-Keynesian Model with Unemployment

Blanchard, Olivier - 2008

We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications for the unemployment-inflation tradeoff and for the conduct of monetary policy.<br><br>We proceed in two steps. We first leave nominal rigidities aside. We show that, under a standard...

Persistent link: https://www.econbiz.de/10012464750

An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output

Blanchard, Olivier - 1999

This paper characterizes the dynamic effects of shocks in government spending and taxes on economic activity in the United States in the post-war period. It does so by using a mixed structural VAR/event study approach. Identification is achieved by using institutional information about the tax...

Persistent link: https://www.econbiz.de/10012471521

Fiscal Stimulus under Sovereign Risk

Bianchi, Javier - 2019

The excess procyclicality of fiscal policy is commonly viewed as a central malaise in emerging economies. We document that procyclicality is more pervasive in countries with higher sovereign risk and provide a model of optimal fiscal policy with nominal rigidities and endogenous sovereign...

Persistent link: https://www.econbiz.de/10012480252

Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets

Blanchard, Olivier - 2001

Product and labor market deregulation are fundamentally about reducing and redistributing rents, leading economic players to adjust in turn to this new distribution. Thus, even if deregulation eventually proves beneficial, it comes with strong distribution and dynamic effects. The transition may...

Persistent link: https://www.econbiz.de/10012470609

Monetary Independence and Rollover Crises

Bianchi, Javier - 2018

a severe recession in the event of a liquidity crisis, and are therefore more prone to run on government bonds. In a …

Persistent link: https://www.econbiz.de/10012480991

Currency Wars, Coordination, and Capital Controls

Blanchard, Olivier - 2016

The strong monetary policy actions undertaken by advanced economies' central banks have led to complaints of "currency wars" by some emerging market economies, and to widespread demands for more macroeconomic policy coordination. This paper revisits these issues. It concludes that, while...

Persistent link: https://www.econbiz.de/10012456289

Inflation and Activity – Two Explorations and their Monetary Policy Implications

Blanchard, Olivier - 2015

We explore two issues triggered by the crisis. First, in most advanced countries, output remains far below the pre-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a breakdown of the relation between inflation and...

Persistent link: https://www.econbiz.de/10012456944

Are Capital Inflows Expansionary or Contractionary? Theory, Policy Implications, and Some Evidence

Blanchard, Olivier - 2015

The workhorse open-economy macro model suggests that capital inflows are contractionary because they appreciate the currency and reduce net exports. Emerging market policy makers however believe that inflows lead to credit booms and rising output, and the evidence appears to go their way. To...

Persistent link: https://www.econbiz.de/10012457050

Banks, Liquidity Management and Monetary Policy

Bianchi, Javier - 2014

We develop a new tractable model of banks' liquidity management and the credit channel of monetary policy. Banks … reserves. Deposit withdrawals are random, and banks manage liquidity risk by holding a precautionary buffer of reserves. We … greater liquidity risk. Through various tools, monetary policy affects the real economy by altering that trade-off. In a …

Persistent link: https://www.econbiz.de/10012458178