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Long-run growth expectations and "global imbalances"

Hoffmann, Mathias; Krause, Michael U.; Laubach, Thomas - Center for Financial Studies - 2011

This paper examines to what extent the build-up of global imbalances since the mid-1990s can be explained in a purely real open-economy DSGE model in which agents' perceptions of long-run growth are based on filtering observed changes in productivity. We show that long-run growth estimates based...

Persistent link: https://www.econbiz.de/10010958650

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

knowledge regarding unobservables such as potential output and equilibrium interest rates. We formulate a novel characterization …

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

Escapist policy rules

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

. We analyze situations in which the self-confirming equilibrium is unique and learnable according to Bullard and Mitra … Cho, Williams, and Sargent (2002). We show that our system can sometimes depart from the self-confirming equilibrium … towards a non-equilibrium outcome characterized by persistently low nominal interest rates and persistently low inflation …

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

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

During the turbulent 1970s and 1980s the Bundesbank established an outstanding reputation in the world of central banking. Germany achieved a high degree of domestic stability and provided safe haven for investors in times of turmoil in the international financial system. Eventually the...

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

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

Central bank misperceptions and the role of money in interest rate rules

Beck, Günter W.; Wieland, Volker - Center for Financial Studies - 2008

Research with Keynesian-style models has emphasized the importance of the output gap for policies aimed at controlling inflation while declaring monetary aggregates largely irrelevant. Critics, however, have argued that these models need to be modified to account for observed money growth and...

Persistent link: https://www.econbiz.de/10010986449

The mistake of 1931: A general equilibrium analysis

Eggertsson, Gauti B.; Pugsley, Benjamin - Center for Financial Studies - 2006

This paper studies a dynamic general equilibrium model with sticky prices and rational expectations in an environment …

Persistent link: https://www.econbiz.de/10010986450

Money in monetary policy design under uncertainty: The two-pillar Phillips curve versus ECB-style cross-checking

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

equilibrium interest rates. We formulate a novel characterization of ECB-style monetary cross-checking and show that it can …

Persistent link: https://www.econbiz.de/10010986472