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Overcoming the zero bound on nominal interest rates with negative interest on currency : Gesell's solution
Buiter, Willem H. - London School of Economics (LSE) - 2003
An economy is in a liquidity trap when monetary policy cannot influence either real or nominal variables of interest. A necessary condition for this is that the short nominal interest rate is constrained by its lower bound, typically zero. The paper considers two small analytical models, one...
Persistent link: https://www.econbiz.de/10010745321
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Central banks and financial crises
Buiter, Willem H. - London School of Economics (LSE) - 2008
The paper draws lessons from the experience of the past year for the conduct of central banks in the pursuit of macroeconomic and financial stability. Macroeconomic stability is defined as either price stability or as price stability and sustainable output or employment growth. Financial...
Persistent link: https://www.econbiz.de/10010745389
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Debt and incomplete financial markets: a case for nominal GDP targeting
Sheedy, Kevin D. - London School of Economics (LSE) - 2013
been used to justify a policy of strict inflation targeting. …
Persistent link: https://www.econbiz.de/10010746283
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Central bank's two-way communication with the public and inflation dynamics
Aoki, Kosuke; Kimura, Takeshi - London School of Economics (LSE) - 2008
two-way communication between the central bank and the public affects inflation dynamics. When inflation target is … hence the bank can stabilize inflation. However, when inflation target is unobservable or less credible, the public updates … their perceived inflation target and the information revealed from markets to the bank becomes less perfect. The degree of …
Persistent link: https://www.econbiz.de/10010746305
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The timing of monetary policy shocks
Olivei, Giovanni; Tenreyro, Silvana - London School of Economics (LSE) - 2006
A vast empirical literature has documented delayed and persistent effects of monetary policy shocks on output. We show that this finding results from the aggregation of output impulse responses that differ sharply depending on the timing of the shock: when the monetary policy shock takes place...
Persistent link: https://www.econbiz.de/10010746450
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Wage setting patterns and monetary policy: international evidence
Olivei, Giovanni; Tenreyro, Silvana - London School of Economics (LSE) - 2008
Systematic differences in the timing of wage setting decisions among industrialized countries provide an ideal framework to study the importance of wage rigidity in the transmission of monetary policy. The Japanese Shunto presents the most well-known case of bunching in wage setting decisions:...
Persistent link: https://www.econbiz.de/10010746577
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The transmission of monetary policy operations through redistributions and durable purchases
Sterk, Vincent; Tenreyro, Silvana - London School of Economics (LSE) - 2013
A large literature has documented statistically significant effects of monetary policy on economic activity. The central explanation for how monetary policy transmits to the real economy relies critically on nominal rigidities, which form the basis of the New Keynesian (NK) framework. This paper...
Persistent link: https://www.econbiz.de/10011126046
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James Tobin : an appreciation of his contribution to economics
Buiter, Willem H. - London School of Economics (LSE) - 2003
Jim Tobin, who died on March 11, 2002 at the age of 84, was one of giants of economics of the second half of the twentieth century and the greatest macroeconomist of his generation. Tobin’s influence on macroeconomic theory is so pervasive - so much part of our professional ‘acquis’ - that...
Persistent link: https://www.econbiz.de/10011071326
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Synchronization in wage setting and the effects of monetary policy
Olivei, Giovanni; Tenreyro, Silvana - London School of Economics (LSE) - 2007
Systematic differences in the timing of wage setting decisions among industrialized countries provide an ideal framework to study the importance of wage rigidity in the transmission of monetary policy. The Japanese Shunto, for example, presents a clear case of bunching in wage setting decisions:...
Persistent link: https://www.econbiz.de/10011071407
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How to measure living standards and productivity
Oulton, Nicholas - London School of Economics (LSE) - 2009
This paper sets out a general algorithm for calculating true cost-of-living indices or true producer price indices when demand is not homothetic, i.e. when not all expenditure elasticities are equal to one. In principle, economic theory tells us how we should calculate a true cost-of-living...
Persistent link: https://www.econbiz.de/10011071515