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Hoerova, Marie - 2010

We study credible information transmission by a benevolent Central Bank. We consider two possibilities: direct … revelation through an announcement, versus indirect information transmission through monetary policy. These two ways of … transmitting information have very different consequences. Since the objectives of the Central Bank and those of individual …

Persistent link: https://www.econbiz.de/10013150973

Money talks

Hoerova, Marie; Monnet, Cyril; Temzelides, Ted - 2009

Persistent link: https://www.econbiz.de/10011605137

Bayesian and adaptive optimal policy under model uncertainty

Svensson, Lars E. O.; Williams, Noah - 2006

includes an experimentation component reflecting the endogeneity of information. We develop algorithms to solve numerically for …

Persistent link: https://www.econbiz.de/10010298360

Keeping up with the Joneses, reference dependence, and equilibrium indeterminacy

Stracca, Livio; al-Nowaihi, Ali - 2005

This model extends the keeping up with the Joneses (KUJ) model to incorporate the notion that positional concerns in consumption are best modelled with a reference dependence specification of preferences, as postulated by Tversky and Kahneman (1991) in the context of riskless choice. In line...

Persistent link: https://www.econbiz.de/10011604490

Liquidity and real equilibrium interest rates: a framework of analysis

Stracca, Livio - 2005

This paper proposes a general equilibrium model with heterogeneous households and a financial market where each financial instrument provides liquidity services in addition to enabling a transfer of purchasing power over time. Importantly, liquidity services may be asymmetric according to...

Persistent link: https://www.econbiz.de/10011604588

The elusive welfare economics of price stability as a monetary policy objective: why New Keynesian central bankers should validate core inflation

Buiter, Willem H. - 2006

whether nominal price and/or wage rigidities are due to New-Keynesian, Old-Keynesian or sticky-information Phillips curves …

Persistent link: https://www.econbiz.de/10011604655

What is global excess liquidity, and does it matter?

Rüffer, Rasmus; Stracca, Livio - 2006

This paper endeavours to provide a comprehensive analysis of the nature and the possible importance of “global excess liquidity”, a concept which has attracted considerable attention in recent years. The contribution of this paper is threefold. First, we present some conceptual discussion on...

Persistent link: https://www.econbiz.de/10011604742

Should we take inside money seriously?

Stracca, Livio - 2007

This paper presents a dynamic general equilibrium model with sticky prices, in which "inside" money, made out of commercial banks’ liabilities, plays an active, structural role role. It is shown that, in such a model, an inside money shock has a well-defined meaning. A calibrated version of...

Persistent link: https://www.econbiz.de/10011604887

Run-prone banking and asset markets

Hoerova, Marie - 2007

I analyze the role that asset markets play in the performance and stability of the run-prone banking sector. Banks insure consumers against privately observed liquidity shocks. Asset market investments insure consumers against losses from bank runs. If the probability of a run is small, then...

Persistent link: https://www.econbiz.de/10011604891

Interbank lending, credit risk premia and collateral

Heider, Florian; Hoerova, Marie - 2009

We study the functioning of secured and unsecured inter-bank markets in the presence of credit risk. The model generates empirical predictions that are in line with developments during the 2007-2009 financial crises. Interest rates decouple across secured and unsecured markets following an...

Persistent link: https://www.econbiz.de/10011605153