Similar Search Results

Expectations-driven liquidity traps : implications for monetary and fiscal policy

Nakata, Taisuke; Schmidt, Sebastian - 2019

We study optimal monetary and fiscal policy in a New Keynesian model where occasional declines in agents' confidence can give rise to persistent liquidity trap episodes. Unlike in the case of fundamental-driven liquidity traps, there is no straightforward recipe for mitigating the welfare costs...

Persistent link: https://www.econbiz.de/10012037377

Expectations and the stability problem for optimal monetary policies

Evans, George W.; Honkapohja, Seppo - 2000

Eine auf den Fundamentaldaten beruhende Regelbindung der Geldpolitik ohne Selbstverpflichtung, die bei vollkommen … geeigneter Weise in die optimale Geldpolitik einbezogen werden. Diese eindeutige Schlußfolgerung gilt auch dann, wenn sich der … wichtig es ist, die Geldpolitik angemessen zu gestalten und dabei nicht nur die Fundamentaldaten, sondern auch direkt die …

Persistent link: https://www.econbiz.de/10011418901

Conservatism and liquidity traps

Nakata, Taisuke; Schmidt, Sebastian - 2015

Persistent link: https://www.econbiz.de/10011288633

Dealing with a liquidity trap when government debt matters optimal time-consistent monetary and fiscal policy

Burgert, Matthias; Schmidt, Sebastian - 2013

Persistent link: https://www.econbiz.de/10010233241

Fiscal activism and the zero nominal interest rate bound

Schmidt, Sebastian - 2014

Persistent link: https://www.econbiz.de/10010380054

Near-rational exuberance

Bullard, James Brian (contributor); … - 2005

We study how the use of judgement or add-factorsʺ in macroeconomic forecasting may disturb the set of equilibrium outcomes when agents learn using recursive methods. We isolate conditions under which new phenomena, which we call exuberance equilibria, can exist in standard macroeconomic...

Persistent link: https://www.econbiz.de/10003209153

Speed limit policy and liquidity traps

Nakata, Taisuke; Schmidt, Sebastian; Yoo, Paul - 2018

The zero lower bound (ZLB) constraint on interest rates makes speed limit policies (SLPs) - policies aimed at stabilizing output growth - less effective. Away from the ZLB, the history dependence induced by a concern for output growth stabilization improves the inflation-output tradeoff for a...

Persistent link: https://www.econbiz.de/10011921493

Average inflation targeting and the interest rate lower bound

Budianto, Flora; Nakata, Taisuke; Schmidt, Sebastian - 2020

Assigning a discretionary central bank a mandate to stabilize an average in ation rate| rather than a period-by-period in ation rate|increases welfare in a New Keynesian model with an occasionally binding lower bound on nominal interest rates. Under rational expecta- tions, the...

Persistent link: https://www.econbiz.de/10012206238

Time-consistent monetary policy, terms of trade manipulation and welfare in open economies

Schmidt, Sebastian - 2018

A key insight from the open economy literature is that domestic price stability is in general not optimal for countries that exert some market power over their terms of trade. Under commitment, a national benevolent monetary policymaker improves upon the allocation associated with stable...

Persistent link: https://www.econbiz.de/10011792170

The risky steady state and the interest rate lower bound

Hills, Timothy; Nakata, Taisuke; Schmidt, Sebastian - 2016

Persistent link: https://www.econbiz.de/10011618375