Similar Search Results

The Fiscal Consequences of Missing an Inflation Target

Andreolli, Michele; Rey, Hélène - National Bureau of Economic Research - 2023

The European Central Bank is unique in setting monetary policy for several sovereign states with heterogeneous debt levels and different maturity structures. The monetary-fiscal nexus is central to the functioning of the euro area. We focus on one particular aspect of that nexus, the effect the...

Persistent link: https://www.econbiz.de/10013537713

Optimal Monetary Policy with Heterogeneous Agents : Discretion, Commitment, and Timeless Policy

Dávila, Eduardo; Schaab, Andreas - National Bureau of Economic Research - 2023

This paper characterizes optimal monetary policy in a canonical heterogeneous-agent New Keynesian (HANK) model with wage rigidity. Under discretion, a utilitarian planner faces the incentive to redistribute towards indebted, high marginal utility households, which is a new source of inflationary...

Persistent link: https://www.econbiz.de/10014226158

Trade Wars and the Optimal Design of Monetary Rules

Auray, Stéphane; Devereux, Michael B.; Eyquem, Aurélien - National Bureau of Economic Research - 2024

Monetary rules may have a large effect on the outcome of trade wars if central banks target the CPI inflation rate or more generally changes in the relative price of traded goods. We lay out a two-country open-economy model with sticky prices where countries engage in trade wars. In the presence...

Persistent link: https://www.econbiz.de/10014544729

Optimal Monetary Policy with r*<0

Billi, Roberto M.; Galí, Jordi; Nakov, Anton - National Bureau of Economic Research - 2023

We study the optimal monetary policy problem in a New Keynesian economy with a zero lower bound (ZLB) on the nominal interest rate, when the steady state natural rate (r*) becomes permanently negative. We show that the optimal policy aims to approach gradually a new steady state with positive...

Persistent link: https://www.econbiz.de/10014322895

A Horse Race of Monetary Policy Regimes : An Experimental Investigation

Kostyshyna, Olena; Petersen, Luba; Yang, Jing - National Bureau of Economic Research - 2022

We provide a comprehensive assessment of leading monetary policy frameworks away from and at the ELB. Inflation targeting, dual mandate, average inflation targeting under 4- and 10-period horizons, price level targeting, and nominal GDP level targeting are evaluated in a laboratory setting....

Persistent link: https://www.econbiz.de/10013435092

Understanding U.S. Inflation During the COVID Era

Ball, Laurence M.; Leigh, Daniel; Mishra, Prachi - National Bureau of Economic Research - 2022

This paper analyzes the dramatic rise in U.S. inflation since 2020, which we decompose into a rise in core inflation as measured by the weighted median inflation rate and deviations of headline inflation from core. We explain the rise in core with two factors, the tightening of the labor market...

Persistent link: https://www.econbiz.de/10013435175

Expectations and the Neutrality of Interest Rates

Cochrane, John H. - National Bureau of Economic Research - 2022

Lucas (1972) is the pathbreaking analysis of the neutrality and temporary non-neutrality of money. But our central banks set interest rate targets, and do not even pretend to control money supplies. How is inflation determined under an interest rate target?

Persistent link: https://www.econbiz.de/10013388824

EXIM's Exit : The Real Effects of Trade Financing by Export Credit Agencies

Kabir, Poorya; Matray, Adrien; Mueller, Karsten; Xu, Chenzi - National Bureau of Economic Research - 2024

We study the role of export credit agencies--the predominant tool of industrial policy--on firm behavior by using the effective shutdown of the Export-Import Bank of the United States (EXIM) from 2015-2019 as a natural experiment. We show that firms that previously relied on EXIM support saw a...

Persistent link: https://www.econbiz.de/10014468219

Helicopter Drops and Liquidity Traps

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

Liquidity Dependence and the Waxing and Waning of Central Bank Balance Sheets

Acharya, Viral V.; Chauhan, Rahul S.; Rajan, Raghuram Govind - National Bureau of Economic Research - 2023

in 2017, there was no commensurate shrinkage of these claims on liquidity. Consequently, the financial sector was left … more sensitive to potential liquidity shocks, with weaker-capitalized banks most exposed. This necessitated Fed liquidity … provision in September 2019 and again in March 2020. Liquidity-risk-exposed banks suffered the most drawdowns and the largest …

Persistent link: https://www.econbiz.de/10014247971

1
2
3
4
5
6
7
8
9
10
Next
Last