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Firm Turnover in the Export Market and the Case for Fixed Exchange Rate Regime

Hamano, Masashige - 2020

This paper revisits the case for exible vs. fixed exchange rate regime in a two-country model with firm heterogeneity and nominal wage rigidity under incomplete financial markets. Dampening nominal exchange rate fluctuations simultaneously stabilizes the firm turnover in the export market. When...

Persistent link: https://www.econbiz.de/10012842809

Frequency-Domain Information for Active Portfolio Management

Faria, Gonçalo - 2020

We assess the benefits of using frequency-domain information for active portfolio management. To do so, we forecast the … asset classes. When used in the context of active portfolio management, the forecasts based on frequency-domain information … information ratio (0.57 vs 0.45), higher CER gains (1.12% vs 0.81%), and lower maximum drawdown (19.1% vs 19.6%) …

Persistent link: https://www.econbiz.de/10012842810

Evaluating Innovation Policy : A Structural Treatment Effect Model of R&D Subsidies

Takalo, Tuomas - 2008

This paper studies the welfare effects of Ramp;D subsidies. We develop a model of continuous optimal treatment with outcome heterogeneity where the treatment outcome depends on applicant investment. The model takes into account heterogeneous application costs and identifies the treatment effect...

Persistent link: https://www.econbiz.de/10012725099

Expectations, Learning and Monetary Policy : An Overview of Recent Research

Evans, George W. - 2008

Expectations about the future are central for determination of current macroeconomic outcomes and the formulation of monetary policy. Recent literature has explored ways for supplementing the benchmark of rational expectations with explicit models of expectations formation that rely on...

Persistent link: https://www.econbiz.de/10012725765

On the Estimation of Euler Equations in the Presence of a Potential Regime Shift

Saikkonen, Pentti - 2007

The concept of a peso problem is formalized in terms of a linear Euler equation and a nonlinear marginal model describing the dynamics of the exogenous driving process. It is shown that, using a threshold autoregressive model as a marginal model, it is possible to produce time-varying peso...

Persistent link: https://www.econbiz.de/10012728874

The Inflation Target and the Structure of Labour Markets : Implications for Common Monetary Policy

Kilponen, Juha - 2007

Both the optimal inflation target and the optimal degree of output stabilization are found to be conditional on the prevailing wage bargaining structure. If monopolistic wage setters act as strategic leaders of the monetary policy game, an explicit inflation targeting regime removes inflation...

Persistent link: https://www.econbiz.de/10012728877

The Effects of Transmission Uncertainty on the Flexibility-Credibility Tradeoff in Monetary Policy

Senegas, Marc-Alexandre - 2007

contain useful information about the relative size of the credibility problem and, hence, about how incipient uncertainty can …

Persistent link: https://www.econbiz.de/10012728879

Performance of Monetary Policy with Internal Central Bank Forecasting

Honkapohja, Seppo - 2007

Recent models of monetary policy have analysed the desirability of different optimal and ad hoc interest-rate rules under the restrictive assumption that forecasts of the private sector and central bank are homogeneous. In this paper, we study from a learning perspective the implications of...

Persistent link: https://www.econbiz.de/10012728908

Robustness in Monetary Policymaking : A Case for the Friedman Rule

Kilponen, Juha - 2007

Inflation targeting involves using all available information in stabilizing inflation around some target rate (Svensson …

Persistent link: https://www.econbiz.de/10012729228

Discretion and the Transmission Lags of Monetary Policy

Kilponen, Juha - 2007

Monetary policy transmission lags create credibility problems for the inflation-targeting policy maker who acts under discretion. We show that if prices react to monetary policy with a longer lag than output, the welfare maximizing inflation-targeting policy implies no policy stabilization of...

Persistent link: https://www.econbiz.de/10012729353