The new open-economy macroeconomics seeks to provide an improved basis for monetary and exchange-rate policy through the construction of open-economy models that feature rational expectations, optimising agents, and slowly adjusting prices of goods. This paper promotes an alternative approach...

We study whether a central bank should deviate from its objective of price stability to promote financial stability. We tackle this question within a textbook New Keynesian model augmented with capital accumulation and microfounded endogenous financial crises. We compare several interest rate...

Uniquely amongst industrialized countries worldwide, Germany does not impose a general speed limit on highways. This is different in the Netherlands, where a limit of 130km/h is implemented. The direct border between the two countries provides an opportunity to construct a natural experiment and...

This paper extends the existing literature on the uniqueness and stability conditions for an equilibrium under inflation-forecast-based (IFB) rules. It shows that, for a variety of New Keynesian sticky-price and sticky-inflation models, these are a function not just of the degree of...

Es ist das theoretische Ziel des Forschungsvorhabens, die Bestimmungsfaktoren der "monetäre Stabilität unter Unsicherheit" aus einer Vermögensmarktperspektive und aus einer handlungstheoretischen Perspektive zu erklären. Die im Vermögensmarktansatz bislang nicht explizierten...