Similar Search Results

Fiscal and monetary policy interactions in an endogenous growth model with financial intermediaries

Espinosa, Marco A.; Yip, Chong K. - Federal Reserve Bank of Atlanta - 1995

We review some inflationary and growth claims surrounding fiscal and monetary policy interactions. While financial intermediation has long been acknowledged as a key mechanism in the transmission of these interactions, only recently have economists incorporated the explicit modeling of such...

Persistent link: https://www.econbiz.de/10005401934

Maturity shortening and market failure

Thierfelder, Felix - Deutsche Bundesbank - 2012

Motivated by the financial crisis of 2007-2009 several papers have provided explanations for why liquidity may dry up … during market stress. This paper also looks at this issue but focuses on the question as to why the liquidity crunch was not … need to provide longer-term liquidity. The paper asks what market failure central banks were addressing by intervening and …

Persistent link: https://www.econbiz.de/10010957159

Maturity shortening and market failure

Thierfelder, Felix - Deutsche Bundesbank - 2012

Persistent link: https://www.econbiz.de/10010535438

Inflation, deflation, and uncertainty: What drives euro area option-implied inflation expectations and are they still anchored in the sovereign debt crisis?

Scharnagl, Michael; Stapf, Jelena - Deutsche Bundesbank - 2014

We tackle two questions in this paper: In the sovereign debt crisis, what moves the euro area inflation outlook and has the firm anchoring of medium to long-term inflation expectations been touched? Deriving densities from a new data set on options on the euro area harmonized index of consumer...

Persistent link: https://www.econbiz.de/10010957128

Monetary and fiscal policy interactions in a New Keynesian model with capital accumulation and non-Ricardian consumers

Leith, Campbell; von Thadden, Leopold - Deutsche Bundesbank - 2006

This paper develops a small New Keynesian model with capital accumulation and government debt dynamics. The paper discusses the design of simple monetary and fiscal policy rules consistent with determinate equilibrium dynamics in the absence of Ricardian equivalence. Under this assumption,...

Persistent link: https://www.econbiz.de/10005083241

Policy interaction, expectations, and the liquidity trap

Evans, George W.; Honkapohja, Seppo - Federal Reserve Bank of Atlanta - 2003

adaptive learning dynamics the authors find the additional possibility of a liquidity trap, in which the economy slips below … aggressive money supply rule. Fiscal policy alone cannot push the economy out of the liquidity trap. However, raising the … threshold at which the money supply rule is employed can dislodge the economy from the liquidity trap and ensure a return to the …

Persistent link: https://www.econbiz.de/10005721630

Monetary aggregates as monetary targets: a statistical investigation

Whiteman, Charles H.; Roberds, William - Federal Reserve Bank of Atlanta - 1990

Persistent link: https://www.econbiz.de/10005721690

Learning about monetary policy rules when long-horizon expectations matter

Preston, Bruce - Federal Reserve Bank of Atlanta - 2003

This paper considers the implications of an important source of model misspecification for the design of monetary policy rules: the assumed manner of expectations formation. Following a considerable literature on learning, it is assumed that private agents seek to maximize their objectives...

Persistent link: https://www.econbiz.de/10005721702

Impacts of priors on convergence and escapes from Nash inflation

Sargent, Thomas J.; Williams, Noah - Federal Reserve Bank of Atlanta - 2003

Recent papers have analyzed how adaptive agents may converge to and escape from self-confirming equilibria. All of these papers have imputed to agents a particular prior about drifting coefficients. In the context of a model of monetary policy, this paper analyzes dynamics that govern both...

Persistent link: https://www.econbiz.de/10005721705

Drifts and volatilities: monetary policies and outcomes in the post WWII U.S.

Cogley, Timothy; Sargent, Thomas J. - Federal Reserve Bank of Atlanta - 2003

For a VAR with drifting coefficients and stochastic volatilities, the authors present posterior densities for several objects that are of interest for designing and evaluating monetary policy. These include measures of inflation persistence, the natural rate of unemployment, a core rate of...

Persistent link: https://www.econbiz.de/10005721709