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Does the Chinese Interest Rate Follow the US Interest Rate?

Cheung, Yin-Wong - 2013

One argument for floating the Chinese renminbi (RMB) is to insulate China's monetary policy from the US effect. However, we note that both theoretical considerations and empirical results do not offer a definite answer on the link between exchange rate arrangement and policy dependence. We...

Persistent link: https://www.econbiz.de/10012753957

Catching-Up and Credit Booms in Central and Eastern European EU Member States and Acceding Countries : An Interpretation within the New Neoclassical Synthesis Framework

Backé, Peter - 2013

Credit to the private sector has risen rapidly in many Central and Eastern European EU Member States (MS) and acceding countries (AC) in recent years. The lending boom has recently been particularly strong in the segment of loans to households, primarily mortgage-based housing loans, and in...

Persistent link: https://www.econbiz.de/10012754091

Optimal Stabilization Policy with Flexible Prices

Berentsen, Aleksander - 2013

We construct a dynamic stochastic general equilibrium model to study optimal monetary stabilization policy. Prices are fully flexible and money is essential for trade. Our main result is that if the central bank pursues a long-run price path, thereby controlling inflation expectations, it can...

Persistent link: https://www.econbiz.de/10012754424

Endogenous Systemic Liquidity Risk

Cao, Jin - 2013

Traditionally, aggregate liquidity shocks are modelled as exogenous events. Extending our previous work (Cao & Illing, 2008), this paper analyses the adequate policy response to endogenous systemic liquidity risk. We analyse the feedback between lender of last resort policy and incentives of...

Persistent link: https://www.econbiz.de/10013095988

Liquidity Shortages and Monetary Policy

Cao, Jin; Illing, Gerhard - 2021

The paper models the interaction between risk taking in the financial sector and central bank policy for the case of pure illiquidity risk. It is shown that, when bad states are highly unlikely, public provision of liquidity may improve the allocation, even though it encourages more risk taking...

Persistent link: https://www.econbiz.de/10013316591

Optimal Conservatism and Collective Monetary Policymaking under Uncertainty

Hefeker, Carsten; Zimmer, Blandine - CESifo - 2014

by the presence of uncertainty about the committee members’ output objective. We show how this need for conservatism …

Persistent link: https://www.econbiz.de/10010888452

The Impact of Fiscal Rules on Public Finances: Theory and Empirical Evidence for the Euro Area

Marneffe, Wim; Aarle, Bas Van; Wielen, Wouter Van Der; … - CESifo - 2010

This paper presents a review of the most significant fiscal rules policymakers can choose from. The insights from this review are then applied to the current budgetary situation of the European Union. In the European Union, the supranational Stability and Growth Pact (SGP) should provide the...

Persistent link: https://www.econbiz.de/10008833927

Delayed Action and Uncertain Targets. How Much Will Climate Policy Cost?

Bosetti, Valentina; Carraro, Carlo; Sgobbi, Alessandra; … - CESifo - 2008

. What additional economic cost of mitigation measures will this delay imply? At the same time, the uncertainty surrounding … this uncertainty cost? Is there a hedging strategy that decision makers can adopt to cope with delayed action and uncertain … computing the optimal abatement strategy in the presence of uncertainty about a global stabilisation target (which will be …

Persistent link: https://www.econbiz.de/10005406321

The Value of a Statistical Life under Ambiguity Aversion

Treich, Nicolas - CESifo - 2008

We show that ambiguity aversion increases the value of a statistical life as soon as the marginal utility of wealth is higher if alive than dead. The intuition is that ambiguity aversion has a similar effect as an increase in the perceived baseline mortality risk, and thus operates as the...

Persistent link: https://www.econbiz.de/10005406403

Assessing Horizontal Mergers under Uncertain Efficiency Gains

Choné, Philippe; Linnemer, Laurent - CESifo - 2006

examines the role of uncertainty (on the efficiency gains) in this tradeoff. Common wisdom is that the antitrust authorities … are uncertain would not be theoretically founded. Indeed, the attitude towards uncertainty depends on the curvature of the …

Persistent link: https://www.econbiz.de/10005416449