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On the (de)stabilizing effects of news shocks
Winkler, Roland; Wohltmann, Hans-Werner - Institut für Weltwirtschaft (IfW) - 2009
This paper analyzes the impacts of news shocks on macroeconomic volatility. Whereas anticipation amplifies volatility …) to provide numerical evidence that news shocks increase the volatility of key macroeconomic variables in the euro area …
Persistent link: https://www.econbiz.de/10005017501
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On the Non-Optimality of Information: An Analysis of the Welfare Effects of Anticipated Shocks in the New Keynesian Model
Wohltmann, Hans-Werner; Winkler, Roland - Institut für Weltwirtschaft (IfW) - 2009
This paper compares the welfare effects of anticipated and unanticipated cost-push shocks within the canonical New Keynesian model with optimal monetary policy. We find that, for empirically plausible degrees of nominal rigidity, the anticipation of a future cost-push shock leads to a higher...
Persistent link: https://www.econbiz.de/10005818832