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Monetary Policy and Rational Asset Price Bubbles

Galí, Jordi - 2013

I examine the impact of alternative monetary policy rules on a rational asset price bubble, through the lens of an overlapping generations model with nominal rigidities. A systematic increase in interest rates in response to a growing bubble is shown to enhance the fluctuations in the latter,...

Persistent link: https://www.econbiz.de/10012459855

Notes for a New Guide to Keynes (I) : Wages, Aggregate Demand, and Employment

Galí, Jordi - 2012

I revisit the General Theory's discussion of the role of wages in employment determination through the lens of the New Keynesian model. The analysis points to the key role played by the monetary policy rule in shaping the link between wages and employment, and in determining the welfare impact...

Persistent link: https://www.econbiz.de/10012460009

Monetary Policy and Unemployment

Galí, Jordi - 2010

Much recent research has focused on the development and analysis of extensions of the New Keynesian framework that model labor market frictions and unemployment explicitly. The present paper describes some of the essential ingredients and properties of those models, and their implications for...

Persistent link: https://www.econbiz.de/10012462779

The Optimal Inflation Target and the Natural Rate of Interest

Andrade, Philippe - 2018

allows us not only to assess the uncertainty surrounding the optimal inflation target, but also to determine the latter while … taking into account the parameter uncertainty facing the policy maker, including uncertainty with regard to the determinants … the euro area, the slope of the curve is close to -0.9. That finding is robust to allowing for parameter uncertainty …

Persistent link: https://www.econbiz.de/10012453386

Macroeconomic Modeling for Monetary Policy Evaluation

Galí, Jordi - 2007

We describe some of the main features of the recent vintage macroeconomic models used for monetary policy evaluation. We point to some of the key differences with respect to the earlier generation of macro models, and highlight the insights for policy that these new frameworks have to offer. Our...

Persistent link: https://www.econbiz.de/10012465104

Monetary Policy and Endogenous Financial Crises

Boissay, Frederic; Collard, Fabrice; Galí, Jordi; … - National Bureau of Economic Research - 2021

We study whether a central bank should deviate from its objective of price stability to promote financial stability. We tackle this question within a textbook New Keynesian model augmented with capital accumulation and microfounded endogenous financial crises. We compare several interest rate...

Persistent link: https://www.econbiz.de/10012794628

Uncovered Interest Parity, Forward Guidance, and the Exchange Rate

Galí, Jordi - 2020

Under uncovered interest parity (UIP), the size of the effect on the real exchange rate of an anticipated change in real interest rate differentials is invariant to the horizon at which the change is expected. Empirical evidence using US, euro area and UK data points to a substantial deviation...

Persistent link: https://www.econbiz.de/10012479321