Showing 1 - 10 of 10
Persistent link: https://www.econbiz.de/10005726722
This paper studies household beliefs during the recent US housing boom. To characterize the heterogeneity in households’ views about housing and the economy, we perform a cluster analysis on survey responses at different stages of the boom. The estimation always finds a small cluster of...
Persistent link: https://www.econbiz.de/10005004107
We examine the limiting behavior of cooperative and noncooperative fiscal policies as countries’ market power goes to zero. We show that these policies converge if countries raise revenues through lump-sum taxation. However, if there are unremovable domestic distortions, such as distorting...
Persistent link: https://www.econbiz.de/10005367761
This paper provides a simple counterexample to the standard belief that in a world economy in which all countries are small, strategic interactions between policymakers are trivial and thus cooperative and noncooperative government policies coincide. It is well known that this holds for tariff...
Persistent link: https://www.econbiz.de/10005498546
Persistent link: https://www.econbiz.de/10000436886
Persistent link: https://www.econbiz.de/10001561462
Our study examines whether there is a systematic relationship between the monetary standard under which a country operates and the rate of inflation it experiences. It also explores whether there are other properties of inflation, money, and output that differ between economies operating under a...
Persistent link: https://www.econbiz.de/10005367720
Why is inflation persistently high in some periods and low in others? The reason may be absence of commitment in monetary policy. In a standard model, absence of commitment leads to multiple equilibria, or expectation traps, even without trigger strategies. In these traps, expectations of high...
Persistent link: https://www.econbiz.de/10005367768
Persistent link: https://www.econbiz.de/10005526369
We assess the quantitative importance of the expectation effects of regime shifts in monetary policy in a DSGE model that allows the monetary policy rule to switch between a ?bad? regime and a ?good? regime. When agents take into account such regime shifts in forming expectations, the...
Persistent link: https://www.econbiz.de/10005726730