Narrow search
Showing 1 - 10 of 141
Cover Image
Price stability and monetary policy effectiveness when nominal interest rates are bounded at zero
Coenen, Günter; Orphanides, Athanasios; Wieland, Volker - Center for Financial Studies - 2003
This paper employs stochastic simulations of a small structural rational expectations model to investigate the consequences of the zero bound on nominal interest rates. We find that if the economy is subject to stochastic shocks similar in magnitude to those experienced in the U.S. over the...
Persistent link: https://www.econbiz.de/10010986364
Cover Image
A quantitative exploration of the opportunistic approach to disinflation
Aksoy, Yunus; Orphanides, Athanasios; Small, David; … - Center for Financial Studies - 2005
Under a conventional policy rule, a central bank adjusts its policy rate linearly according to the gap between inflation and its target, and the gap between output and its potential. Under the opportunistic approach to disinflation a central bank controls inflation aggressively when inflation is...
Persistent link: https://www.econbiz.de/10010986427
Cover Image
Exchange-rate policy and the zero bound on nominal interest
Wieland, Volker; Coenen, Günter - Center for Financial Studies - 2004
In this paper, we study the effectiveness of monetary policy in a severe recession and deflation when nominal interest rates are bounded at zero. We compare two alternative proposals for ameliorating the effect of the zero bound: an exchange-rate peg and price-level targeting. We conduct this...
Persistent link: https://www.econbiz.de/10010986434
Cover Image
A Small Estimated Euro Area Model with Rational Expectations and Nominal Rigidities
Coenen, Guenter; Wieland, Volker - Center for Financial Studies - 2003
In this paper we estimate a small model of the euro area to be used as a laboratory for evaluating the performance of alternative monetary policy strategies. We start with the relationship between output and inflation and investigate the fit of the nominal wage contracting model due to Taylor...
Persistent link: https://www.econbiz.de/10010986466
Cover Image
Quantitative easing: A rationale and some evidence from Japan
Wieland, Volker - Center for Financial Studies - 2009
This paper reviews the rationale for quantitative easing when central bank policy rates reach near zero levels in light of recent announcements regarding direct asset purchases by the Bank of England, the Bank of Japan, the U.S. Federal Reserve and the European Central Bank. Empirical evidence...
Persistent link: https://www.econbiz.de/10010958535
Cover Image
Data Uncertainty and the Role of Money as an Information Variable for Monetary Policy
Coenen, Guenter; Levin, Andrew; Wieland, Volker - Center for Financial Studies - 2003
that monetary aggregates have a potentially significant role in providing information about current real output. We then … proceed to analyze the information content of money in a forward-looking model in which monetary policy is optimally … determined subject to incomplete information about the true state of the economy. We show that monetary aggregates may have …
Persistent link: https://www.econbiz.de/10010958671
Cover Image
The performance of forecast-based monetary policy rules under model uncertainty
Levin, Andrew; Wieland, Volker; Williams, John C. - Center for Financial Studies - 2003
We investigate the performance of forecast-based monetary policy rules using five macroeconomic models that reflect a wide range of views on aggregate dynamics. We identify the key characteristics of rules that are robust to model uncertainty: such rules respond to the one- year-ahead inflation...
Persistent link: https://www.econbiz.de/10010958751
Cover Image
The Zero-Interest-Rate and the Role of the Exchange Rate for Monetary Policy in Japan
Coenen, Guenter; Wieland, Volker - Center for Financial Studies - 2003
In this paper we study the role of the exchange rate in conducting monetary policy in an economy with near-zero nominal interest rates as experienced in Japan since the mid-1990s. Our analysis is based on an estimated model of Japan, the United States and the euro area with rational expectations...
Persistent link: https://www.econbiz.de/10010958771
Cover Image
The Determinants of Debt and (Private-) Equity Financing in Young Innovative SMEs: Evidence from Germany
Schäfer, Dorothea; Werwatz, Axel; Zimmermann, Volker - Center for Financial Studies - 2003
Financial theory creates a puzzle. Some authors argue that high-risk entrepreneurs choose debt contracts instead of equity contracts since risky but high returns are of relatively more value for a loan-financed firm. On the contrary, authors who focus explicitly on start-up finance predict that...
Persistent link: https://www.econbiz.de/10005022424
Cover Image
The Zero-Interest-Rate and the Role of the Exchange Rate for Monetary Policy in Japan
Coenen, Guenter; Wieland, Volker - Center for Financial Studies - 2003
In this paper we study the role of the exchange rate in conducting monetary policy in an economy with near-zero nominal interest rates as experienced in Japan since the mid-1990s. Our analysis is based on an estimated model of Japan, the United States and the euro area with rational expectations...
Persistent link: https://www.econbiz.de/10005022425