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Expectations-driven cycles in the housing market
Lambertini, Luisa; Mendicino, Caterina; Punzi, Maria Teresa - Suomen Pankki - 2012
loan-to-value ratios reduce the severity of expectations-driven cycles and the volatility of household debt, aggregate …
Persistent link: https://www.econbiz.de/10009397037
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(Un)anticipated monetary policy in a DSGE model with a shadow banking system
Verona, Fabio; Martins, Manuel M. F.; Drumond, Inês - Suomen Pankki - 2013
Motivated by the U.S. events of the 2000s, we address whether a too low for too long interest rate policy may generate a boom-bust cycle. We simulate anticipated and unanticipated monetary policies in state-of-the-art DSGE models and in a model with bond financing via a shadow banking system, in...
Persistent link: https://www.econbiz.de/10010699285
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Welfare and bond pricing implications of fiscal stabilization policies
Christoffel, Kai; Jaccard, Ivan; Kilponen, Juha - Suomen Pankki - 2013
How do cyclical fiscal stabilisation policies affect welfare and government bond risk premia? Using a new Keynesian model we find that the effects of fiscal policy rules on the bond premium and welfare crucially depend on the source of business cycle fluctuations. The overall effect is estimated...
Persistent link: https://www.econbiz.de/10010818989
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Updating the euro area Phillips curve: the slope has increased
Oinonen, Sami; Paloviita, Maritta - Suomen Pankki - 2014
This paper examines recent changes in the cyclicality of euro area inflation. We estimate time-varying parameters for the hybrid New Keynesian Phillips curve using three alternative proxies for the output gap. Our analysis, which is based on the state-space method with Kalman filtering...
Persistent link: https://www.econbiz.de/10011099548
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Central bank liquidity operations during the financial market and economic crisis: observations, thoughts and questions
Pikkarainen, Pentti - Suomen Pankki - 2010
many cases, central bank balance sheets have undergone extremely strong growth. The actions by central banks raise a number …
Persistent link: https://www.econbiz.de/10008774240
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Financial shocks and optimal monetary policy rules
Verona, Fabio; Martins, Manuel M. F.; Drumond, Inês - Suomen Pankki - 2014
shocks and transmission mechanisms. Overall, we find that targeting financial stability – in particular credit growth, but in …
Persistent link: https://www.econbiz.de/10010945110
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Estimating intertemporal elasticity of substitution in a sticky price model
Kilponen, Juha; Vilmunen, Jouko; Vähämaa, Oskari - Suomen Pankki - 2013
Cancellation of income and substitution effect implied by King-Plosser-Rebelo (1988) preferences breaks tight coefficient restriction between the slope of the Phillips curve and the elasticity of consumption with respect to real interest rate in a sticky price macro model. This facilitates the...
Persistent link: https://www.econbiz.de/10010674551
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Long swings and chaos in the exchange rate in a DSGE model with a Taylor rule
Bask, Mikael - Suomen Pankki - 2007
A DSGE model with a Taylor rule is augmented with an evolutionary switching between technical and fundamental analyses in currency trade, where the fractions of these trading tools are determined within the model. Then, a shock hits the economy. As a result, chaotic dynamics and long swings may...
Persistent link: https://www.econbiz.de/10005648889
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Innovation, reallocation and growth
Acemoglu, Daron; Akcigit, Ufuk; Bloom, Nicholas; Kerr, … - Suomen Pankki - 2013
We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A … incumbents reduces growth and welfare. For example, a subsidy to incumbent R&D equivalent to 5% of GDP reduces welfare by about 1 …
Persistent link: https://www.econbiz.de/10010698829
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How can growth be accelerated in Europe?
Viren, Matti - Suomen Pankki - 2012
This paper deals with economic growth in Europe. The special emphasis is in key institutional factors that are commonly … assumed to affect aggregate growth: functioning of labor markets, availability of labor and capital, and the size of … profitability and competitiveness do indeed constitute the main determinants of growth. However, also other variables like working …
Persistent link: https://www.econbiz.de/10010584389