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Shifts in euro area Beveridge curves and their determinants

Bonthuis, Boele; Jarvis, Valerie; Vanhala, Juuso - Suomen Pankki - 2015

This paper analyses euro area Beveridge curves at the euro area aggregate and country level over the past 25 years. Using an autoregressive distributed lag model we find a significant outward shift in the euro area Beveridge curve since the onset of the crisis, but considerable heterogeneity at...

Persistent link: https://www.econbiz.de/10011164359

Labour taxation and shock propagation in a New Keynesian model with search frictions

Vanhala, Juuso - Suomen Pankki - 2006

This paper studies the implications of labour taxation in determining the sensitivity of an economy to macroeconomic shocks. We construct a New Keynesian business cycle model with matching frictions of the labour market, where sluggish employment adjustment implies a key role for labour markets...

Persistent link: https://www.econbiz.de/10005207140

Endogenous market structures and labour market dynamics

Colciago, Andrea; Rossi, Lorenza - Suomen Pankki - 2011

in addressing the unemployment- volatility puzzle. Consistently with US evidence, new firms create a large fraction of …

Persistent link: https://www.econbiz.de/10009021417

Staggered prices and trend inflation: some nuisances

Ascari, Guido - Suomen Pankki - 2003

Most of the papers in the sticky-price literature are based on a log-linearization around the zero inflation steady state, a simplifying but counterfactual assumption. This paper shows that when trend inflation is considered, both the long-run and the short-run properties of DGE models based on...

Persistent link: https://www.econbiz.de/10005423725

Productivity and job flows: Heterogeneity of new hires and continuing jobs in the business cycle

Kilponen, Juha; Vanhala, Juuso - Suomen Pankki - 2009

volatility puzzle’. We let new matches and continuing jobs differ in terms of productivity level and sensitivity to aggregate … vacancies and to destroy old matches that are temporarily less productive. The model produces a well behaved Beveridge curve …, despite endogenous job destruction and more volatile vacancies and unemployment, without needing to rely on differing wage …

Persistent link: https://www.econbiz.de/10005034673

Learning as a rational foundation for macroeconomics and finance

Evans, George W; Honkapohja, Seppo - Suomen Pankki - 2011

Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models in real time. This approach provides a stability test for...

Persistent link: https://www.econbiz.de/10008918570

A new approach to analyzing convergence and synchronicity in growth and business cycles: cross recurrence plots and quantification analysis

Crowley, Patrick M; Schultz, Aaron - Suomen Pankki - 2010

Convergence and synchronisation of business and growth cycles are important issues in the efficient formulation of euro area economic policies, and in particular European Central Bank (ECB) monetary policy. Although several studies in the economics literature address the issue of synchronicity...

Persistent link: https://www.econbiz.de/10008643872

Is Europe growing together or growing apart?

Crowley, Patrick; Garcia, Enrique; Quah, Chee-Heong - Suomen Pankki - 2013

While it is painfully clear that the ’ever closer’ monetary and financial union in the EU has run into serious trouble there has been very little study of the degree to which the countries have become similar or different in their economic growth dynamics. This paper therefore goes beyond...

Persistent link: https://www.econbiz.de/10010722796

The great moderation under the microscope: decomposition of macroeconomic cycles in US and UK aggregate demand

Crowley, Patrick M; Hughes Hallett, Andrew - Suomen Pankki - 2011

In this paper the relationship between the growth of real GDP components is explored in the frequency domain using both static and dynamic wavelet analysis. This analysis is carried out separately for the US and UK using quarterly data, and the results are found to be substantially different for...

Persistent link: https://www.econbiz.de/10009643484

Volatility transfers between cycles: A theory of why the "great moderation" was more mirage than moderation

Crowley, Patrick; Hughes Hallett, Andrew - Suomen Pankki - 2014

In this paper we use a New Keynesian model to explain why volatility transfer from high frequency to low frequency … increase in inflation aversion and/or a reduction to a commitment to output stabilization could have caused this volatility … reversal in any of the policy parameters and hence in the volatility found in the low frequency cycles identifi…ed by use of …

Persistent link: https://www.econbiz.de/10010945112