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Nakamura, Emi; Steinsson, Jon; McKay, Alisdair - National Bureau of Economic Research (NBER) - 2015

In recent years, central banks have increasingly turned to "forward guidance" as a central tool of monetary policy, especially as interest rates around the world have hit the zero lower bound. Standard monetary models imply that far future forward guidance is extremely powerful: promises about...

Persistent link: https://www.econbiz.de/10011133509

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

Coalition-Proof Trade and the Friedman Rule in the Lagos-Wright Model

Kennan, John; Wallace, Neil; Hu, Tai-wei - National Bureau of Economic Research (NBER) - 2007

to pay interest on money does not enlarge the set of implementable allocations. …

Persistent link: https://www.econbiz.de/10005089108

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

Historical Perspectives on the Monetary Transmission Mechanism

Miron, Jeffrey A; Romer, Christina Duckworth; Weil, David - National Bureau of Economic Research (NBER) - 1993

This paper examines changes over time in the importance of the lending channel in the transmission of monetary shocks to the real economy. We first use a simple extension of the Bernanke-Blinder model to isolate the observable factors that affect the strength of the lending channel. We then show...

Persistent link: https://www.econbiz.de/10005575297

A Theory of Demand Shocks

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

This paper presents a model of business cycles driven by shocks to consumer expectations regarding aggregate productivity. Agents are hit by heterogeneous productivity shocks, they observe their own productivity and a noisy public signal regarding aggregate productivity. The shock to this public...

Persistent link: https://www.econbiz.de/10005580186

The Transmission Mechanism and the Role of Asset Prices in Monetary Policy

Mishkin, Frederic - National Bureau of Economic Research (NBER) - 2001

mechanisms operating through stock prices, real estate prices, and exchange rates affect which affect investment and consumption …

Persistent link: https://www.econbiz.de/10005580466

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

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