Similar Search Results

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

Stable Sunspot Equilibria in a Cash-in-Advance Economy

Evans, George W.; Honkapohja, Seppo; Marimon, Ramon - CESifo - 2001

We develop a monetary model with flexible supply of labor, cash in advance constraints and government spending financed by seignorage. This model has two regimes. One regime is conventional with two steady states. The other regime has a unique steady state which can be determinate or...

Persistent link: https://www.econbiz.de/10005766279

Existence of Adaptively Stable Sunspot Equilibria Near an Indeterminate Steady State

Evans, George W.; Honkapohja, Seppo - CESifo - 2001

We examine the nonlinear model Xt = Et F(xt+1) . Markov SSEs exist near an indeterminate steady state, X = F(X), provided F´(X)> 1. We show that there exist Markov SSEs that are E-stable, and therefore locally stable under adaptive learning, if F´(X)< -1.

Persistent link: https://www.econbiz.de/10005196257

Expectational Stability of Resonant Frequency Sunspot Equilibria

Evans, George W.; Honkapohja, Seppo - CESifo - 2001

We consider the stability under adaptive learning of the complete set of solutions to the model when . In addition to the fundamentals solution, the literature describes both finite-state Markov sunspot solutions, satisfying a resonant frequency condition, and autoregressive solutions depending...

Persistent link: https://www.econbiz.de/10005196325

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

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

Backe, 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

Stock Markets, Banks and Long Run Economics Growth: A Panel Cointegration-Based Analysis

Cavenaile, Laurent; Gengenbach, Christian; Palm, Franz - CESifo - 2013

the direction of potential causality between financial and economic development. Our results conclude to the existence of … a single cointegrating vector between financial development and growth and of causality going from financial development … to economic growth. We find little evidence of reverse causation as well as bi-directional causality. We interpret this …

Persistent link: https://www.econbiz.de/10010723543

Inflation Targeting by Debtor Central Banks in Emerging Market Economies

Löffler, Axel; Schnabl, Gunther; Schobert, Franziska - CESifo - 2010

Given buoyant capital inflows and managed exchange rates the majority of emerging market central banks have continued to accumulate massive foreign reserves. If left unsterilized, the liquidity expansion can threaten domestic macroeconomic stability. To contain domestic inflation these central...

Persistent link: https://www.econbiz.de/10008511598

1
2
3
4
5
6
7
8
9
10
Next
Last