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Fiscal Policy, Monopolistic Competition, and Finite Lives

Heijdra, Ben J.; Ligthart, Jenny - CESifo - 2006

The paper studies the short-run, transitional, and long-run output effects of permanent and temporary shocks in public consumption under various financing methods. To this end, a dynamic macroeconomic model for a closed economy is developed, which features a perfectly competitive final goods...

Persistent link: https://www.econbiz.de/10005094242

The Transitional Dynamics of Fiscal Policy in Small Open Economies

Heijdra, Ben J.; Ligthart, Jenny - CESifo - 2006

The paper studies the dynamic macroeconomic effects of fiscal shocks of various duration (permanent and temporary) under different financing methods (lump-sum tax and government debt). To this end, we develop an intertemporal macroeconomic model for a small open economy, featuring monopolistic...

Persistent link: https://www.econbiz.de/10005094387

Liquidity Shortages and Monetary Policy

Cao, Jin; Illing, Gerhard - CESifo - 2008

pure illiquidity risk. It is shown that, when bad states are highly unlikely, public provision of liquidity may improve the … an incentive of financial intermediaries to free ride on liquidity in good states, resulting in excessively low liquidity … more liquid investment. In that case, liquidity injection will make the free riding problem even worse. The results show …

Persistent link: https://www.econbiz.de/10005766205

The Effects of Monetary Policy on Unemployment Dynamics under Model Uncertainty - Evidence from the US and the Euro Area

Altavilla, Carlo; Ciccarelli, Matteo - CESifo - 2009

This paper explores the role that the imperfect knowledge of the structure of the economy plays in the uncertainty surrounding the effects of rule-based monetary policy on unemployment dynamics in the euro area and the US. We employ a Bayesian model averaging procedure on a wide range of models...

Persistent link: https://www.econbiz.de/10005051516

Financial Fragility, Bubbles and Monetary Policy

Illing, Gerhard - CESifo - 2001

prevent a run on financial intermediation by injecting liquidity when asset values fall significantly. The inflationary side … a central bank to inject liquidity in a crisis. …

Persistent link: https://www.econbiz.de/10005181425

Global Financial Transmission of Monetary Policy Shocks

Ehrmann, Michael; Fratzscher, Marcel - CESifo - 2006

The paper shows that US monetary policy has been an important determinant of global equity markets. Analysing 50 equity markets worldwide, we find that returns fall on average around 3.8% in response to a 100 basis point tightening of US monetary policy, ranging from a zero response in some to a...

Persistent link: https://www.econbiz.de/10005181586

Monetary Policy Analysis in Real-Time. Vintage Combination from a Real-Time Dataset.

Altavilla, Carlo; Ciccarelli, Matteo - CESifo - 2011

This paper provides a general strategy for analyzing monetary policy in real time which accounts for data uncertainty without explicitly modelling the revision process. The strategy makes use of all the data available from a real-time data matrix and averages model estimates across all data...

Persistent link: https://www.econbiz.de/10008861862