Similar Search Results

Fiscal Policy: Its Macroeconomics in Perspective

Tobin, James - Cowles Foundation for Research in Economics, Yale University - 2001

President George W. Bush is preparing a drastic permanent reduction in federal income and estate taxes. He cites as precedents tax cuts by Kennedy-Johnson 1962-64 and Reagan 1981. In those cases, however, the economy was operating well below full employment and needed a "demand-side" stimulus...

Persistent link: https://www.econbiz.de/10005762666

Evaluating Inflation Targeting Using a Macroeconometric Model

Fair, Ray C. - Cowles Foundation for Research in Economics, Yale University - 2006

This paper uses a structurally estimated macroeconometric model, denoted the MC model, to evaluate inflation targeting in the United States. Various interest rate rules are tried with differing weights on inflation and output, and various optimal control problems are solved using differing...

Persistent link: https://www.econbiz.de/10005463890

Liquidity Black Holes

Morris, Stephen; Shin, Hyun Song - Cowles Foundation for Research in Economics, Yale University - 2003

run are generated. A "liquidity black hole" is the analogue of the run outcome in a bank run model. Short horizon traders … liquidity black hole comes into existence. Empirical implications include the sharp V-shaped pattern in prices around the time … of the liquidity black hole. …

Persistent link: https://www.econbiz.de/10005463975

Liquidity, Default and Crashes: Endogenous Contracts in General Equilibrium

Geanakoplos, John - Cowles Foundation for Research in Economics, Yale University - 2001

contracts, including endogenous margin requirements on loans. This in turn allows GE to explain liquidity and liquidity crises … in equilibrium. A formal definition of liquidity is presented. When new information raises the probability a fixed income …

Persistent link: https://www.econbiz.de/10004990661

Understanding Inflation-Indexed Bond Markets

Campbell, John Y.; Shiller, Robert J.; Viceira, Luis M. - Cowles Foundation for Research in Economics, Yale University - 2009

rates, bond risks, and liquidity explain the trends before 2008 and the unusual developments in the fall of 2008. Low …

Persistent link: https://www.econbiz.de/10004999551

Liquidity, Default and Crashes: Endogenous Contracts in General Equilibrium

Geanakoplos, John - Cowles Foundation for Research in Economics, Yale University - 2001

The possibility of default limits available liquidity. If the potential default draws nearer, a liquidity crisis may … endogenous contracts, including endogenous margin requirements on loans. This in turn allows GE to explain liquidity and … liquidity crises in equilibrium. A formal definition of liquidity is presented. When new information raises the probability and …

Persistent link: https://www.econbiz.de/10005593327

Low Interest Rates and High Asset Prices: An Interpretation in Terms of Changing Popular Models

Shiller, Robert J. - Cowles Foundation for Research in Economics, Yale University - 2007

There has been a widespread perception in the past few years that long-term asset prices are generally high because monetary authorities have effectively kept long-term interest rates, which the market uses to discount cash flows, low. This perception is not accurate. Long-term interest rates...

Persistent link: https://www.econbiz.de/10005593652

Money and Production, and Liquidity Trap

Dubey, Pradeep; Geanakoplos, John - Cowles Foundation for Research in Economics, Yale University - 2006

, then the economy will fall into a liquidity trap today. …

Persistent link: https://www.econbiz.de/10005762579

Estimates of the Effectiveness of Monetary Policy

Fair, Ray C. - Cowles Foundation for Research in Economics, Yale University - 2001

This paper examines various interest rate rules, as well as policies derived by solving optimal control problems, for their ability to dampen economic fluctuations caused by random shocks. A tax rate rule is also considered. A multicountry econometric model is used for the experiments. The...

Persistent link: https://www.econbiz.de/10005463921

Communication and Monetary Policy

Amado, Jeffrey D.; Morris, Stephen; Shin, Hyun Song - Cowles Foundation for Research in Economics, Yale University - 2003

One role of monetary policy is to coordinate expectations in the economy and greater transparency of monetary policy may lead to greater coordination. But if transparent

Persistent link: https://www.econbiz.de/10005464053