Similar Search Results

Persistence and nominal inertia in a generalized Taylor economy: how longer contracts dominate shorter contracts

Dixon, Huw; Kara, Engin - 2005

In this paper we develop the Generalized Taylor Economy (GTE) in which there are many sectors with overlapping … longer contracts are present. We are able to solve the puzzle of why Calvo contracts appear to be more persistent than simple … Taylor contracts: it arises because of the distribution of contract lengths. When we choose a GTE with the same distribution …

Persistent link: https://www.econbiz.de/10011604535

The distribution of contract durations across firms: a unified framework for understanding and comparing dynamic wage and price setting models

Dixon, Huw - 2006

distribution across firms of completed contract lengths. The distribution is consistent with a Generalised Taylor Economy or a … Generalised Calvo model with duration dependent reset probabilities. Equivalent distributions have different degrees of forward …

Persistent link: https://www.econbiz.de/10011604722

Average inflation targeting: How far to look into the past and the future?

Maések, Frantisek; Zemlicka, Jan - 2024

welfare loss difference between solution techniques is considerably decreasing in the degree of history dependence. …

Persistent link: https://www.econbiz.de/10015199491

Asymmetries in the transmission of monetary policy shocks over the business cycle: A Bayesian Quantile Factor Augmented VAR

Velasco, Sofia - 2024

This paper introduces a Bayesian Quantile Factor Augmented VAR (BQFAVAR) to examine the asymmetric effects of monetary policy throughout the business cycle. Monte Carlo experiments demonstrate that the model effectively captures non-linearities in impulse responses. Analysis of aggregate...

Persistent link: https://www.econbiz.de/10015199498

Product quality, measured inflation and monetary policy

Rodnyansky, Alexander; Van der Ghote, Alejandro; Wales, … - 2022

This paper proposes a tractable New Keynesian (NK) economy with endogenous adjustment in product quality that nests the canonical framework. Endogenous quality choice reduces the slope of the traditional NK Phillips curve and ampliffes the economy's response to productivity shocks. This leads to...

Persistent link: https://www.econbiz.de/10013368010

Lower for longer under endogenous technology growth

Schmöller, Michaela; Spitzer, Martin - 2022

This paper studies monetary policy strategies under endogenous technology dynamics and low r. Endogenous growth strengthens the gains from make-up strategies relative to inflation targeting, especially if policy space is reduced. This result is due to the long-run non-neutrality of money and the...

Persistent link: https://www.econbiz.de/10014278361

Optimal monetary policy in an estimated SIR model

Benmir, Ghassane; Jaccard, Ivan; Vermandel, Gauthier - 2023

This paper studies the design of Ramsey optimal monetary policy in a Health New Keynesian (HeNK) model with Susceptible, Infected and Recovered (SIR) agents. The nonlinear model is estimated with maximum likelihood techniques on Euro Area data. Our objective is to deconstruct the mechanism by...

Persistent link: https://www.econbiz.de/10014476273

Price setting on the two sides of the Atlantic: Evidence from supermarket-scanner data

Karadi, Peter; Amann, Jurgen; Sánchez Bachiller, Javier; … - 2023

We compare supermarket price setting in the US and the euro area and assess its impact on food inflation. We introduce a novel scanner dataset of Germany, the Netherlands, France, and Italy (EA4) and contrast it with an equivalent dataset from the US. We find that both higher frequency and...

Persistent link: https://www.econbiz.de/10014543607

Identification of systematic monetary policy

Hack, Lukas; Istrefi, Klodiana; Meier, Matthias - 2023

We propose a novel identification design to estimate the causal effects of systematic monetary policy on the propagation of macroeconomic shocks. The design combines (i) a time-varying measure of systematic monetary policy based on the historical composition of hawks and doves in the Federal...

Persistent link: https://www.econbiz.de/10014543651

Risk, monetary policy and asset prices in a global world

Bekaert, Geert; Hoerova, Marie; Xu, Nancy R. - 2023

We study how monetary policy and risk shocks affect asset prices in the US, the euro area, and Japan, differentiating between "traditional" monetary policy and communication events, each decomposed into "pure" and information shocks. Communication shocks from the US spill over to risk in the...

Persistent link: https://www.econbiz.de/10014543667