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Welfare Costs of Inflation in a Dynamic Economy with Search Unemployment and Endogenous Growth

Heer, Burkhard - CESifo - 2000

Recent work on money and endogenous growth finds modest welfare costs of inflation. Furthermore, high inflation reduces … rate of inflation depending on the elasticity of labor supply. Considering the transition dynamics following a change in … the monetary policy, the optimal quarterly inflation rate is found to amount to approximately 3.5% in the benchmark case …

Persistent link: https://www.econbiz.de/10005094411

The Transmission of German Monetary Policy in the Pre-Euro Period

Luetkepohl, Helmut; Wolters, Jürgen - CESifo - 2001

is constructed for the German monetary sector based on M3, GNP, an inflation rate, a long-term interest rate and a short …-term rate which represents the policy variable of the DBB. Moreover, import price inflation is included as an exogenous variable …

Persistent link: https://www.econbiz.de/10005181277

The Money-Age Distribution: Empirical Facts and Limited Monetary Models

Heer, Burkhard; Maussner, Alfred; McNelis, Paul D. - CESifo - 2007

The money-age distribution is hump-shaped for the US post-war economy. There is no clear cut relation between the variation of money holdings within generations and age. Furthermore, money is found to be only weakly correlated with both income and wealth. We analyze three motives for money...

Persistent link: https://www.econbiz.de/10005181362

Intergenerational Risk-Sharing through Funded Pensions and Public Debt

Chen, Damiaan H.J.; Beetsma, Roel; Ponds, Eduard; Romp, … - CESifo - 2014

We explore the benefits of intergenerational risk-sharing through both private funded pensions and via the public debt. We use a multi-period overlapping generations model with a PAYG pension pillar, a funded pension pillar and a government. Shocks are smoothed via the public debt and variations...

Persistent link: https://www.econbiz.de/10010877853

Hypnosis Before Wake-up Call?! The Revival of Sovereign Credit Risk Perception in the EMU-Crisis

Bordon, Ingo G.; Schmid, Kai D.; Schmidt, Michael - CESifo - 2014

This paper qualifies the view of pronounced overpricing of sovereign bonds for the so-called GIIPS countries during the financial crisis. We use annual data for 21 OECD countries from 1980 to 2012. As opposed to related studies, our data set allows us to contrast the pricing of macroeconomic...

Persistent link: https://www.econbiz.de/10010888450

Fiscal Spillovers in the Euro Area

Caporale, Guglielmo Maria; Girardi, Alessandro - CESifo - 2011

This paper analyses the dynamic effects of fiscal imbalances in a given EMU member state on the borrowing costs of other countries in the euro area. The estimation of a multivariate, multi-country time series model (specifically a Global VAR, or GVAR) using quarterly data for the EMU period...

Persistent link: https://www.econbiz.de/10009391724

Fiscal Transfers and Fiscal Sustainability

Potrafke, Niklas; Reischmann, Markus - CESifo - 2014

We examine whether US and German state governments pursue sustainable fiscal policies taking into account fiscal transfers. Using panel data techniques we investigate whether the debt-to-GDP ratio had a positive influence on the primary surplus (Bohn-model). We show that including/excluding...

Persistent link: https://www.econbiz.de/10010754658

Fiscal Autonomy and Fiscal Sustainability: Subnational Taxation and Public Indebtedness in Contemporary Spain

Larin, Benjamin; Süssmuth, Bernd - CESifo - 2014

This study assesses fiscal sustainability in contemporary Spain at the regional level. Spain consists of 17 autonomous regions, two fiscal regimes differing in taxing autonomy, and two path-dependent types of communities with more and less legislatively recognized autonomy. Three of the 17...

Persistent link: https://www.econbiz.de/10010756168

Political Competition and the Limits of Political Compromise

Cunha, Alexandre B.; Ornelas, Emanuel - CESifo - 2014

We consider an economy where competing political parties alternate in office. Due to rent-seeking motives, incumbents have an incentive to set public expenditures above the socially optimum level. Parties cannot commit to future policies, but they can forge a political compromise where each...

Persistent link: https://www.econbiz.de/10010757724

The Sustainability of Fiscal Policy in the United States

Bohn, Henning - CESifo - 2005

The paper examines the sustainability of U.S. fiscal policy, finding substantial evidence in favor. I summarize the U.S. fiscal record from 1792-2003, critically review sustainability conditions and their testable implications, and apply them to U.S. data. I particularly emphasize the...

Persistent link: https://www.econbiz.de/10005765777