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High Frequency Identification of Monetary Non-Neutrality

Nakamura, Emi; Steinsson, Jon - National Bureau of Economic Research (NBER) - 2013

We provide new evidence on the response of real interest rates and inflation to monetary shocks. Our measure of monetary policy shocks is based on unexpected changes in interest rates over a 30-minute window surrounding scheduled Federal Reserve announcements. Our estimates indicate that nominal...

Persistent link: https://www.econbiz.de/10010969387

Nominal Debt as a Burden on Monetary Policy

Marimon, Ramon; Díaz-Giménez, Javier; Giovannetti, Giorgia - National Bureau of Economic Research (NBER) - 2007

We characterize the optimal sequential choice of monetary policy in economies with either nominal or indexed debt. In a model where nominal debt is the only source of time inconsistency, the Markov-perfect equilibrium policy implies the progressive depletion of the outstanding stock of debt,...

Persistent link: https://www.econbiz.de/10005085112

Theoretical Analysis Regarding a Zero Lower Bound on Nominal Interest Rates

McCallum, Bennett T. - National Bureau of Economic Research (NBER) - 2000

monetary stabilization policy to be effective--- via the foreign exchange market. Its quantitative importance is examined in a …

Persistent link: https://www.econbiz.de/10005085164

Sources of Variation in Holding Returns for Fed Funds Futures Contracts

Hamilton, James; Okimoto, Tatsuyoshi - National Bureau of Economic Research (NBER) - 2010

This paper relates predictable gains from positions in fed funds futures contracts to violations of the expectations hypothesis of the term structure of interest rates. Although evidence for predictable gains from positions in short-horizon contracts is mixed, we find that gains in longer...

Persistent link: https://www.econbiz.de/10008631706

Adoption of Financial Technologies: Implications for Money Demand and Monetary Policy

Mulligan, Casey; Sala-i-Martin, Xavier - National Bureau of Economic Research (NBER) - 1996

the total amount of assets. The implication is that, instead of studying money demand using time series and looking at … held. We can use this methodology to estimate the interest elasticity of money demand at interest rates close to zero. We … find that (a) the elasticity of money demand is very small when the interest rate is small, (b) the probability that a …

Persistent link: https://www.econbiz.de/10005710154

Monetary Aggregates and Liquidity in a Neo-Wicksellian Framework

Canzoneri, Matthew Buford; Cumby, Robert E.; Diba, Behzad T. - National Bureau of Economic Research (NBER) - 2008

interest-rate rule, and the money market and financial institutions are typically not even modeled. Critics contend that these …

Persistent link: https://www.econbiz.de/10005710222

Optimal Monetary Impulse-Response Functions in a Matching Model

Kennan, John; Wallace, Neil; Katzman, Brett - National Bureau of Economic Research (NBER) - 1999

The effects on ex ante optima of a lag in seeing monetary realizations are studied using a matching model of money. The … increases in the amount of money that occur with small enough probability can have negative impact effects on output, because it …

Persistent link: https://www.econbiz.de/10005710909

Learning from Prices: Public Communication and Welfare

Amador, Manuel; Weill, Pierre-Olivier - National Bureau of Economic Research (NBER) - 2008

We study the effect of releasing public information about productivity or monetary shocks when agents learn from nominal prices. While public releases have the benefit of providing new information, they can have the cost of reducing the informational efficiency of the price system. We show that,...

Persistent link: https://www.econbiz.de/10005714775

The Young Person's Guide to Neutrality, Price Level Indeterminacy, Interest Rate Pegs, and Fiscal Theories of the Price Level

Buiter, Willem Hendrik - National Bureau of Economic Research (NBER) - 1998

The paper establishes the following: First, money is neutral even if there is a non-zero stock of non-monetary nominal … nominal money stock, is invalid. It combines an overdetermined fiscal-financial program with an unwarranted weakening of the …

Persistent link: https://www.econbiz.de/10005720641

Bubbles and Self-Enforcing Debt

Hellwig, Christian; Lorenzoni, Guido - National Bureau of Economic Research (NBER) - 2006

We characterize equilibria with endogenous debt constraints for a general equilibrium economy with limited commitment in which the only consequence of default is losing the ability to borrow in future periods. First, we show that equilibrium debt limits must satisfy a simple condition that...

Persistent link: https://www.econbiz.de/10005775063