Showing 1 - 10 of 13
What are the economic effects of an interest rate cut when an economy is in the midst of a financial crisis? Under what conditions will a cut stimulate output and employment, and raise welfare? Under which will it have the opposite effects? The authors answer these questions in a general class...
Persistent link: https://www.econbiz.de/10005526624
The authors use the limited participation model of money to study Taylor rules' operating characteristics for setting the interest rate. Rules are evaluated according to their ability to protect the economy from bad outcomes like the burst of inflation observed in the 1970s. On the basis of...
Persistent link: https://www.econbiz.de/10005428373
Persistent link: https://www.econbiz.de/10003390600
Persistent link: https://www.econbiz.de/10002542774
Persistent link: https://www.econbiz.de/10002550213
Persistent link: https://www.econbiz.de/10002556152
Persistent link: https://www.econbiz.de/10001676644
Persistent link: https://www.econbiz.de/10001582778
The authors evaluate the Friedman-Schwartz hypothesis--that a more accommodative monetary policy could have greatly reduced the severity of the Great Depression. To do this, they first estimate a dynamic, general equilibrium model using data from the 1920s and 1930s. Although the model includes...
Persistent link: https://www.econbiz.de/10005428201
The authors’ model, embodying moderate amounts of nominal rigidities, accounts for the observed inertia in inflation and persistence in output. The key features of their model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these...
Persistent link: https://www.econbiz.de/10005428259