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Sticky Information in General Equilibrium

Mankiw, N. Gregory - 2006

This paper develops and analyzes a general-equilibrium model with sticky information. The only rigidity in goods, labor …, wages, and consumption. After presenting the ingredients of such a model, the paper develops an algorithm to solve this …

Persistent link: https://www.econbiz.de/10012466056

Macroeconomic dynamics near the ZLB: a tale of two equilibria

Aruoba, S. Boragan; Schorfheide, Frank - Federal Reserve Bank of Philadelphia - 2013

This paper studies the dynamics of a New Keynesian dynamic stochastic general equilibrium (DSGE) model near the zero lower bound (ZLB) on nominal interest rates. In addition to the standard targeted-inflation equilibrium, we consider a deflation equilibrium as well as a Markov sunspot...

Persistent link: https://www.econbiz.de/10010681653

Money and capital: a quantitative analysis

Aruoba, S. Boragan; Waller, Christopher J.; Wright, Randall - Federal Reserve Bank of St. Louis - 2009

We study the effects of money (anticipated inflation) on capital formation. Previous papers on this topic adopt reduced …-form approaches, putting money in the utility function or imposing cash in advance, but use otherwise frictionless models. We follow a … literature that is more explicit about the frictions making money essential. This introduces several new elements, including a …

Persistent link: https://www.econbiz.de/10005077876

Pervasive Stickiness (Expanded Version)

Mankiw, N. Gregory - 2006

consumers, workers, and firms. We evaluate the model against three key facts that describe short-run fluctuations: the …

Persistent link: https://www.econbiz.de/10012466645

Real-time macroeconomic monitoring: real activity, inflation, and interactions

Aruoba, S. Boragan; Diebold, Francis X. - Federal Reserve Bank of Philadelphia - 2010

The authors sketch a framework for monitoring macroeconomic activity in real-time and push it in new directions. In particular, they focus not only on real activity, which has received most attention to date, but also on inflation and its interaction with real activity. As for the recent...

Persistent link: https://www.econbiz.de/10008627185

Optimal Automatic Stabilizers

McKay, Alisdair - 2016

Should the generosity of unemployment benefits and the progressivity of income taxes depend on the presence of business cycles? This paper proposes a tractable model where there is a role for social insurance against uninsurable shocks to income and unemployment, as well as inefficient business...

Persistent link: https://www.econbiz.de/10012456317

Imperfect Information and Aggregate Supply

Mankiw, N. Gregory - 2010

This paper surveys the research in the past decade on imperfect information models of aggregate supply and the Phillips curve. This new work has emphasized that information is dispersed and disseminates slowly across a population of agents who strategically interact in their use of information....

Persistent link: https://www.econbiz.de/10012462878

Interpreting the Unconventional U.S. Monetary Policy of 2007-09

Reis, Ricardo - 2010

This paper reviews the unconventional U.S. monetary policy responses to the financial and real crises of 2007-09, divided into three groups: interest rate policy, quantitative policy, and credit policy. To interpret interest rate policy, it compares the Federal Reserve's actions with the...

Persistent link: https://www.econbiz.de/10012462989

Sticky Prices Versus Monetary Frictions : An Estimation of Policy Trade-offs

Aruoba, S. Boragan - 2009

bilateral exchanges for which money is essential. The model is estimated and evaluated based on postwar U.S. data. We document … its money demand properties and determine the optimal long-run inflation rate that trades off the New Keynesian distortion … against the distortion caused by taxing money and hence transactions in the decentralized market. Target rates of -1% or less …

Persistent link: https://www.econbiz.de/10012463778

A Sticky-Information General-Equilibrium Model for Policy Analysis

Reis, Ricardo - 2009

This paper presents a dynamic stochastic general-equilibrium model with a single friction in all markets: sticky information. In this economy, agents are inattentive because of costs of acquiring, absorbing and processing information, so that the actions of consumers, workers and firms are slow...

Persistent link: https://www.econbiz.de/10012463915