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The boom-bust cycle in Finland and Sweden 1984-1995 in an international perspective

Jonung, Lars; Schuknecht, Ludger; Tujula, Mika - Center for Financial Studies - 2005

This paper compares the boom-bust cycle in Finland and Sweden 1984-1995 with the average boom-bust pattern in … 1980s and 1990s. The boom-bust cycle in Finland and Sweden 1984-1995 was driven by financial liberalization and a hard …

Persistent link: https://www.econbiz.de/10010958775

Opting out of the great inflation: German monetary policy after the break down of Bretton Woods

Beyer, Andreas; Gaspar, Vítor; Gerberding, Christina; … - Center for Financial Studies - 2008

interpreted, first and foremost, as a commitment device. In our setting, a monetary target helps anchoring inflation and inflation … well as a strong response to deviations of inflation from target and to the activity growth gap. In contrast, the response …

Persistent link: https://www.econbiz.de/10010986410

Surprising comparative properties of monetary models: Results from a new data base

Taylor, John B.; Wieland, Volker - Center for Financial Studies - 2009

In this paper we investigate the comparative properties of empirically-estimated monetary models of the U.S. economy. We make use of a new data base of models designed for such investigations. We focus on three representative models: the Christiano, Eichenbaum, Evans (2005) model, the Smets and...

Persistent link: https://www.econbiz.de/10010958611

Nominal rigidities and the optimal rate of inflation

Andersen, Torben M. - Center for Financial Studies - 1999

This paper analyses two reasons why inflation may interfere with price adjustment so as to create inefficiencies in … resource allocation at low rates of inflation. The first argument is that the higher the rate of inflation the lower the … second argument is that low inflation strengthens nominal price rigidities and thus impairs the flexibility of the price …

Persistent link: https://www.econbiz.de/10010958693

Impulse response matching estimators for DSGE models

Guerron-Quintana, Pablo; Inoue, Atsushi; Kilian, Lutz - Center for Financial Studies - 2014

One of the leading methods of estimating the structural parameters of DSGE mod- els is the VAR-based impulse response matching estimator. The existing asympotic theory for this estimator does not cover situations in which the number of impulse response parameters exceeds the number of VAR model...

Persistent link: https://www.econbiz.de/10011097611

How large is the housing wealth effect? A new approach

Carroll, Christopher D.; Otsuka, Misuzu; Slacalek, Jirka - Center for Financial Studies - 2006

This paper presents a simple new method for estimating the size of wealth effects on aggregate consumption. The method exploits the well-documented sluggishness of consumption growth (often interpreted as habits in the asset pricing literature) to distinguish between short-run and long-run...

Persistent link: https://www.econbiz.de/10010986368

Money in monetary policy design under uncertainty: A formal characterization of ECB-style cross-checking

Beck, Günter W.; Wieland, Volker - Center for Financial Studies - 2006

The European Central Bank has assigned a special role to money in its two pillar strategy and has received much criticism for this decision. The case against including money in the central banks interest rate rule is based on a standard model of the monetary transmission process that underlies...

Persistent link: https://www.econbiz.de/10010986372

Escapist policy rules

Bullard, James; Cho, In-Koo - Center for Financial Studies - 2003

towards a non-equilibrium outcome characterized by persistently low nominal interest rates and persistently low inflation …

Persistent link: https://www.econbiz.de/10010986393

Sticky prices and monetary policy: Evidence from disaggregated US data

Boivin, Jean; Giannoni, Marc P.; Mihov, Ilian - Center for Financial Studies - 2006

This paper uses factor-augmented vector autoregressions (FAVAR) estimated using a large data set to disentangle fluctuations in disaggregated consumer and producer prices which are due to macroeconomic factors from those due to sectorial conditions. This allows us to provide consistent estimates...

Persistent link: https://www.econbiz.de/10010986414

Understanding the effects of government spending on consumption

Galí, Jordi; Vallés, Javier; Wolman, Alexander L. - Center for Financial Studies - 2003

Recent evidence on the effect of government spending shocks on consumption cannot be easily reconciled with existing optimizing business cycle models. We extend the standard New Keynesian model to allow for the presence of rule-of-thumb (non-Ricardian) consumers. We show how the interaction of...

Persistent link: https://www.econbiz.de/10010986424