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The monetary instrument matters
Gavin, William T.; Keen, Benjamin D.; Pakko, Michael R. - Federal Reserve Bank of St. Louis - 2005
This paper revisits the issue of money growth versus the interest rate as the instrument of monetary policy. Using a … of inflation relative to money growth depends on whether the central bank follows a money growth rule or an interest rate … rule. With a money growth rule, inflation is not persistent and the price level is much more volatile than the money supply …
Persistent link: https://www.econbiz.de/10005352925
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Demographics, redistribution, and optimal inflation
Bullard, James; Garriga, Carlos; Waller, Christopher J. - Federal Reserve Bank of St. Louis - 2012
May 30, 2012. "Demographics, Redistribution, and Optimal Inflation," with Carlos Garriga and Christopher J. Waller. Presented by Christopher Waller at the 2012 BOJ-IMES Conference Demographic Changes and Macroeconomic Performance.
Persistent link: https://www.econbiz.de/10010727313
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Inflation risk and optimal monetary policy
Gavin, William T.; Keen, Benjamin D.; Pakko, Michael R. - Federal Reserve Bank of St. Louis - 2007
This paper shows that the optimal monetary policies recommended by New Keynesian models still imply a large amount of inflation risk. We calculate the term structure of inflation uncertainty in New Keynesian models when the monetary authority adopts the optimal policy. When the monetary policy...
Persistent link: https://www.econbiz.de/10005490907
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Monetary policy, the tax code, and the real effects of energy shocks
Gavin, William T.; Keen, Benjamin D.; Kydland, Finn E. - Federal Reserve Bank of St. Louis - 2013
behaves as a negative wealth effect and generates an immediate decline in output, investment, and hours worked. The large drop … in investment then causes a gradual but very persistent decline in the capital stock. That protracted decline in the …
Persistent link: https://www.econbiz.de/10010662819
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Global dynamics at the zero lower bound
Gavin, William T.; Keen, Benjamin D.; Richter, Alexander; … - Federal Reserve Bank of St. Louis - 2013
capital, but we also study the model with capital, with and without investment adjustment costs. Our solution method …
Persistent link: https://www.econbiz.de/10010628491
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Mortgages and monetary policy
Garriga, Carlos; Kydland, Finn E.; Šustek, Roman - Federal Reserve Bank of St. Louis - 2013
cyclical fluctuations in inflation and nominal interest rates. …
Persistent link: https://www.econbiz.de/10011027315
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U.S. monetary policy: a view from macro theory
Gavin, William T.; Keen, Benjamin D. - Federal Reserve Bank of St. Louis - 2012
We use a dynamic stochastic general equilibrium model to address two questions about U.S. monetary policy: 1) Can monetary policy elevate output when it is below potential? and 2) Is the zero lower bound a trap? The model answer to the first question is yes it can, but the effect is only...
Persistent link: https://www.econbiz.de/10010558512
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The zero lower bound and the dual mandate
Gavin, William T.; Keen, Benjamin D. - Federal Reserve Bank of St. Louis - 2012
This article uses a DSGE framework to evaluate the role of monetary policy in determining the likelihood of encountering the zero lower bound. We find that the probability of experiencing episodes of being at zero lower bound depends almost exclusively on the monetary policy rule. A policy rule,...
Persistent link: https://www.econbiz.de/10010562442