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Interest rate rules and macroeconomic stability under heterogeneous expectations
Anufriev, Mikhail; Assenza, Tiziana; Hommes, Cars H.; … - 2009
The recent macroeconomic literature stresses the importance of managing heterogeneous expectations in the formulation … interest rate rules when agents have heterogeneous expectations and update their beliefs based on past performance as in Brock … converge to the rational expectations equilibrium as multiple equilibria may persist, even when a fully rational, but costly …
Persistent link: https://www.econbiz.de/10011378358
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Imperfect information, lagged labor adjustment and the great moderation
Willems, Tim; Wijnbergen, Sweder van - 2012
This paper first documents the increase in the time lag with which labor input reacts to output fluctuations (the labor adjustment lag) that is visible in US data since the mid-1980s. We show that a lagged labor adjustment response is optimal in a setting where there is uncertainty about the...
Persistent link: https://www.econbiz.de/10011378349
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Modeling monetary policy
Reynard, Samuel; Schabert, Andreas - 2009
Persistent link: https://www.econbiz.de/10003913162
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When is quantitative easing effective?
Hoermann, Markus; Schabert, Andreas - 2010 - This version: December 22, 2010
We present a simple macroeconomic model with open market operations that allows examining the effects of quantitative and credit easing. The central bank controls the policy rate, i.e. the price of money in open market operations, as well as the amount and the type of assets that are accepted as...
Persistent link: https://www.econbiz.de/10011382672
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History-dependent monetary regimes : a lab experiment and a HENK model
Arifovic, Jasmina; Salle, Isabelle; Truong, Hung - 2023
Price-level targeting (PLT) is optimal under the fully-informed rational expectations (FIRE) benchmark but lacks … experiment - where expectations are elicited from human subjects - to collect data on expectations, inflation and output dynamics … emulate the subjects' expectations with a micro-founded heterogeneous-expectation New Keynesian (HENK) model and reproduce the …
Persistent link: https://www.econbiz.de/10014280056
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Intention-based reciprocity and the hidden costs of control
Siemens, Ferdinand von - 2011
Persistent link: https://www.econbiz.de/10010191088
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Optimal central bank lending
Schabert, Andreas - 2010
We analyze optimal monetary policy in a sticky pricemodel where the central bank supplies money outrightvia asset purchases and lends money temporarily againstcollateral. The terms of central bank lending affect ra-tioning of money and impact on macroeconomic aggre-gates. The central bank can...
Persistent link: https://www.econbiz.de/10011380751
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Voting right rotation, behavior of committee members and financial market reactions : evidence from the U.S. Federal Open Market Committee
Ehrmann, Michael; Tietz, Robin; Visser, Bauke - 2021
Whether Federal Reserve Bank presidents have the right to vote on the U.S. monetary policy committee depends on a mechanical, yearly rotation scheme. Rotation is without exclusion: also nonvoting presidents attend and participate in the meetings of the committee. Does voting status change...
Persistent link: https://www.econbiz.de/10012545129
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Monetary policy under behavioral expectations : theory and experiment
Hommes, Cars H.; Massaro, Domenico; Weber, Matthias - 2015
Expectations play a crucial role in modern macroeconomic models. We replace the common assumption of rational … expectations in a New Keynesian framework by the assumption that expectations are formed according to a heuristics switching model …
Persistent link: https://www.econbiz.de/10011298879
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Signaling quality through prices in an oligopoly
Janssen, Maarten C. W.; Roy, Santanu - 2007
Firms signal high quality through high prices even if the market structure is highly competitive and price competition is severe. In a symmetric Bertrand oligopoly where products may differ only in their quality, production cost is increasing in quality and the quality of each firm’s product...
Persistent link: https://www.econbiz.de/10011372971