Showing 1 - 9 of 9
This paper focuses on the recently developing financial derivatives markets, and examines the usefulness of option prices as an information variable for monetary policy implementation. A set of option prices provides us with information on the whole probability distribution of the future values...
Persistent link: https://www.econbiz.de/10005419977
This paper explores a new approach to identifying government spending shocks which avoids many of the shortcomings of existing approaches. The new approach is to identify government spending shocks with statistical innovations to the accumulated excess returns of large US military contractors....
Persistent link: https://www.econbiz.de/10005078417
We study the behavior of output, employment, consumption, and investment in Germany during the Great Depression of 1928-37. In this time period, real wages were countercyclical, and productivity and fiscal policy were procyclical. We use the neoclassical growth model to investigate how much...
Persistent link: https://www.econbiz.de/10005419926
This paper investigates the response of real wages and hours worked to an exogenous shock in fiscal policy. We identify this shock with the dynamic response of government purchases and tax rates to an exogenous increase in military purchases. The fiscal shocks that we isolate are characterized...
Persistent link: https://www.econbiz.de/10005419950
This paper illustrates a particular limited information strategy for assessing the empirical plausibility of alternative quantitative general equilibrium business cycle models. The basic strategy is to test whether a model economy can account for the response of actual economy to an exogenous...
Persistent link: https://www.econbiz.de/10005520012
In Japan, the Consumer Price Index (CPI) is widely used as a measure of inflation or the cost of living. The CPI is … field in Japan. …
Persistent link: https://www.econbiz.de/10005419916
This paper assesses the bank-lending channel interpretation of evidence on the heterogeneous response of firms to monetary shocks. To do so I develop a quantitative general equilibrium model of the bank-lending channel with imperfect credit markets. The calibrated model's steady state supports a...
Persistent link: https://www.econbiz.de/10005410951
A large output gap accompanied by stable inflation close to its target calls for further monetary accommodation, but the zero lower bound on interest rates has robbed the Federal Open Market Committee (FOMC) of the usual tool for its provision. We examine how public statements of FOMC...
Persistent link: https://www.econbiz.de/10011027195
Since the late 1980s, the Japanese has experienced tremendous rise and fall of asset prices and large fluctuations of real economic activity, while general price level has remained relatively stable. Such developments raised a question of whether monetary policy should have targeted asset prices...
Persistent link: https://www.econbiz.de/10005726279