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Supply-side policies and the zero lower bound

Fernández-Villaverde, Jesús; Guerrón-Quintana, Pablo; … - Federal Reserve Bank of Philadelphia - 2011

This paper examines how supply-side policies may play a role in fighting a low aggregate demand that traps an economy at the zero lower bound (ZLB) of nominal interest rates. Future increases in productivity or reductions in mark-ups triggered by supply-side policies generate a wealth effect...

Persistent link: https://www.econbiz.de/10009358551

The implications of inflation in an estimated New-Keynesian model

Guerron-Quintana, Pablo A. - Federal Reserve Bank of Philadelphia - 2010

/real frictions as well as that of parameter uncertainty is also addressed. …

Persistent link: https://www.econbiz.de/10008627175

Business cycle implications of internal consumption habit for new Keynesian models

Kano, Takashi; Nason, James M. - Federal Reserve Bank of Philadelphia - 2012

We study the implications of internal consumption habit for new Keynesian dynamic stochastic general equilibrium (NKDSGE) models. Bayesian Monte Carlo methods are employed to evaluate NKDSGE model fit. Simulation experiments show that internal consumption habit often improves the ability of...

Persistent link: https://www.econbiz.de/10010598265

Dichotomy between macroprudential policy and monetary policy on credit and inflation

Suh, Hyunduk - Federal Reserve Bank of Philadelphia - 2012

This paper examines the different effects of macroprudential policy and monetary policy on credit and inflation using a simple New Keynesian model with credit. In this model, macroprudential policy is effective in stabilizing credit but has a limited effect on inflation. Monetary policy with an...

Persistent link: https://www.econbiz.de/10010628486

Fiscal stimulus and distortionary taxation

Drautzburg, Thorsten; Uhlig, Harald - Federal Reserve Bank of Philadelphia - 2013

We quantify the fiscal multipliers in response to the American Recovery and Reinvestment Act (ARRA) of 2009. We extend the benchmark Smets-Wouters (2007) New Keynesian model, allowing for credit-constrained households, the zero lower bound, government capital, and distortionary taxation. The...

Persistent link: https://www.econbiz.de/10010713996

Macro models and monetary policy analysis

Plosser, Charles I. - Federal Reserve Bank of Philadelphia - 2012

Presented by Charles I. Plosser, President and Chief Executive Officer, Federal Reserve Bank of Philadelphia. Bundesbank — Federal Reserve Bank of Philadelphia Spring 2012 Research Conference, Eltville, Germany, May 25, 2012

Persistent link: https://www.econbiz.de/10011026978

Nonlinear adventures at the zero lower bound

Fernández-Villaverde, Jesús; Gordon, Grey; … - Federal Reserve Bank of Philadelphia - 2012

Motivated by the recent experience of the U.S. and the Eurozone, the authors describe the quantitative properties of a New Keynesian model with a zero lower bound (ZLB) on nominal interest rates, explicitly accounting for the nonlinearities that the bound brings. Besides showing how such a model...

Persistent link: https://www.econbiz.de/10011027306

Bayesian estimation of DSGE models

Guerrón-Quintana, Pablo A.; Nason, James M. - Federal Reserve Bank of Philadelphia - 2012

We survey Bayesian methods for estimating dynamic stochastic general equilibrium (DSGE) models in this article. We focus on New Keynesian (NK)DSGE models because of the interest shown in this class of models by economists in academic and policy-making institutions. This interest stems from the...

Persistent link: https://www.econbiz.de/10011027307

Microeconomic uncertainty, international trade, and aggregate fluctuations

Alessandria, George; Choi, Horag; Kaboski, Joseph P.; … - Federal Reserve Bank of Philadelphia - 2014

The extent and direction of causation between micro volatility and business cycles are debated. We examine, empirically and theoretically, the source and effects of fluctuations in the dispersion of producer-level sales and production over the business cycle. On the theoretical side, we study...

Persistent link: https://www.econbiz.de/10010941010

Fiscal volatility shocks and economic activity

Fernandez-Villaverde, Jesus; Guerron-Quintana, Pablo; … - Federal Reserve Bank of Philadelphia - 2011

The authors study the effects of changes in uncertainty about future fiscal policy on aggregate economic activity … consolidation inevitable, there is considerable uncertainty about the policy mix and timing of such budgetary adjustment. To … evaluate the consequences of this increased uncertainty, the authors first estimate tax and spending processes for the U …

Persistent link: https://www.econbiz.de/10009216227