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News versus sunspot shocks in a New Keynesian model
Karnizova, Lilia - Institut für Weltwirtschaft (IfW) - 2010
monetary policy and sunspots. The key distinction between the shocks lies in their relation to the realized policy shock. If … monetary policy is 'active', the sunspots are irrelevant, and the model responses to the news shocks are unique. In both cases …
Persistent link: https://www.econbiz.de/10008522643
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Liquidity Traps, Learning and Stagnation
Evans, George; Guse, Eran; Honkapohja, Seppo - Institut für Weltwirtschaft (IfW) - 2007
We examine global economic dynamics under learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. Under normal monetary and fiscal policy, the intended steady state is locally but not globally stable. Large pessimistic shocks to expectations can lead...
Persistent link: https://www.econbiz.de/10005700647
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The Optimal Inflation Rate and Firm-Level Productivity Growth
Weber, Henning - Institut für Weltwirtschaft (IfW) - 2012
Empirical data show that firms tend to improve their ranking in the productivity distribution over time. A sticky-price model with firm-level productivity growth fits this data and predicts that the optimal long-run inflation rate is positive and between 1.5% and 2% per year. In contrast, the...
Persistent link: https://www.econbiz.de/10010886886
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DSGE Models and Central Banks
Tovar, Camilo Ernesto - Institut für Weltwirtschaft (IfW) - 2008
Over the past 15 years there has been remarkable progress in the specification and estimation of dynamic stochastic general equilibrium (DSGE) models. Central banks in developed and emerging market economies have become increasingly interested in their usefulness for policy analysis and...
Persistent link: https://www.econbiz.de/10005083409
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The Exchange Rate Targeting of Central Banks Revised: The Role of Long-term Interest Rates
Lahtinen, Markus; Mäki-Fränt, Petri - Institut für Weltwirtschaft (IfW) - 2007
Using a New Keynesian macro model, the paper reconsiders the question, whether the central banks should directly respond to exchange rate movements. It is assumed that the transmission of monetary policy to output is carried out by the long-term interest rate, which is determined as a sum of...
Persistent link: https://www.econbiz.de/10005097478
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Monetary Policy Rules and Oil Price Shocks
Kamps, Christophe; Pierdzioch, Christian - Institut für Weltwirtschaft (IfW) - 2002
This paper studies the relative performance of alternative monetary policy rules in the presence of oil price shocks in a small open economy optimizing model. Our analysis shows that it is important to distinguish between alternative price indices (CPI, core CPI, and GDP deflator) when modeling...
Persistent link: https://www.econbiz.de/10005700608
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Die Bedeutung monetärer Größen für die deutsche Wachstumsschwäche 1995-2005
Dovern, Jonas; Jannsen, Nils; Scheide, Joachim - Institut für Weltwirtschaft (IfW) - 2009
Between 1995 and 2005, the German economy has experienced a phase of weak economic growth. We analyze whether this weak growth performance can be attributed to the stance of monetary conditions during that period. We show that the real effective exchange rate did have almost no dampening effects...
Persistent link: https://www.econbiz.de/10005566192
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Distance to Frontier and the Big Swings of the Unemployment Rate: What Room is Left for Monetary Policy?
Huang, Kevin X.D.; Meng, Qinglai - Institut für Weltwirtschaft (IfW) - 2007
in response solely to future in°ation induce real indeterminacy of equilibrium. Applying the Samuelson … by itself has a quantitatively negligible effect and almost all strict inflation-targeting rules lead to indeterminacy … stickiness, indeterminacy is much less likely to occur as policy also responds to output. With estimated labor supply elasticity …
Persistent link: https://www.econbiz.de/10005755151
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Monetary aggregates to improve early output gap estimates in the euro area - an empirical assessment
Boysen-Hogrefe, Jens - Institut für Weltwirtschaft (IfW) - 2014
Output gap estimates at the current edge are subject to severe revisions. This study analyzes whether monetary aggregates can be used to improve the reliability of early output gap estimates as proposed by several theoretical models. A real-time experiment shows that real M1 can improve output...
Persistent link: https://www.econbiz.de/10010886924
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On some problems in discrete wavelet analysis of bivariate spectra with an application to business cycle synchronization in the euro zone
Bruzda, Joanna - Institut für Weltwirtschaft (IfW) - 2011
The paper considers some of the problems emerging from discrete wavelet analysis of popular bivariate spectral quantities like the coherence and phase spectra and the frequency-dependent time delay. The approach taken here, introduced by Whitcher and Craigmile (2004), is based on the maximal...
Persistent link: https://www.econbiz.de/10009643174