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Real implications of the zero bound on nominal interest rates

Wolman, Alexander L. - Federal Reserve Bank of Richmond - 2003

are large in the presence of backward looking price-setting, and small if prices are set to maximize profits. …

Persistent link: https://www.econbiz.de/10004993999

Discretionary monetary policy in the Calvo model

Zandweghe, Willem Van; Wolman, Alexander - Federal Reserve Bank of Richmond - 2011

-period Taylor model, discretionary policy in the Calvo model does not accommodate predetermined prices in a way that inevitably …

Persistent link: https://www.econbiz.de/10009321093

Customer flows, countercyclical markups, and the persistent effects of monetary shocks

Ireland, Peter N. - Federal Reserve Bank of Richmond - 1995

This paper develops a general equilibrium model in which households face fixed costs associated with searching for a new supplier of consumption goods. These search costs provide firms with some monopoly power over their existing customers and generate the kind of customer flow dynamics first...

Persistent link: https://www.econbiz.de/10004993865

Money, trade credit and asset prices

Lacker, Jeffrey M.; Schreft, Stacey L. - Federal Reserve Bank of Richmond - 1991

find that the equilibrium prices of arbitrary contingent claims to future currency differ from those from one-good cash …

Persistent link: https://www.econbiz.de/10004993896

Optimal monetary policy

Khan, Aubhik; King, Robert G.; Wolman, Alexander L. - Federal Reserve Bank of Richmond - 2000

Optimal monetary policy maximizes welfare, given frictions in the economic environment. Constructing a model with two sets of frictions - the Keynesian friction of costly price adjustment by imperfectly competitive firms and the Monetarist friction of costly exchange of wealth for goods - we...

Persistent link: https://www.econbiz.de/10004993913

The case for price stability

Goodfriend, Marvin; King, Robert G. - Federal Reserve Bank of Richmond - 2001

Reasoning within the New Neoclassical Synthesis (NNS) we previously recommended that price stability should be the primary objective of monetary policy. We called this a neutral policy because it keeps output at its potential, defined as the outcome of an imperfectly competitive real business...

Persistent link: https://www.econbiz.de/10004993924

The pitfalls of monetary discretion

Khan, Aubhik; King, Robert G.; Wolman, Alexander L. - Federal Reserve Bank of Richmond - 2001

multiplicity is a form of policy complementarity. Specifically, prices set in the current period embed expectations about future … policy, and actual future policy responds to these same prices. For a range of values of the fundamental state variable — a … ratio of predetermined prices — there is complementarity between actual and expected policy, and multiple equilibria occur …

Persistent link: https://www.econbiz.de/10004993940

Financial stability, deflation, and monetary policy

Goodfriend, Marvin - Federal Reserve Bank of Richmond - 2001

preliminary conclusions. Equity prices are a misleading guide for interest rate policy. Monetary policy tactics protect market …

Persistent link: https://www.econbiz.de/10004993948

Variance properties of Solow's productivity residual and their cyclical implications

Finn, Mary G. - Federal Reserve Bank of Richmond - 1994

price of energy (government spending) is -0.55 (0.09). The Solow residual confounds movements in energy prices and … occurrence of shocks to 'true' technology, energy prices, and government spending, the model economy accounts for 76 or 89 …

Persistent link: https://www.econbiz.de/10004993962

Structure from shocks

Dotsey, Michael - Federal Reserve Bank of Richmond - 1999

Arguments in favor of Keynesian models as opposed to real business cycle models are often made on the grounds that the correlations and impulse response patterns found in the latter are inconsistent with the data. A recent and prominent example of this reasoning is Gali (1999). But certain...

Persistent link: https://www.econbiz.de/10004994012