Narrow search
Showing 1 - 10 of 1,561
Cover Image
Is Time Ripe for Price Level Path Stability?
Gaspar, Vítor - 2007
helps overall macroeconomic stability by making expectations operate like automatic stabilizers. Second, under a price level … arguments in favour of or against price level path stability depend on the degree of dependence of private sector expectations …
Persistent link: https://www.econbiz.de/10012775989
Cover Image
Adaptive learning, persistence, and optimal monetary policy
Gaspar, Vítor; Smets, Frank; Vestin, David - 2006
We show that, when private sector expectations are determined in line with adaptive learning, optimal policy responds … expectations resemble optimal policy under commitment and rational expectations. Nevertheless, it is clear that the mechanism at … play is very different. In the case of commitment it relies on expectations of future policy actions affecting inflation …
Persistent link: https://www.econbiz.de/10011604690
Cover Image
Business Cycle Dynamics Under Rational Inattention
Mackowiak, Bartosz - 2011
We develop a dynamic stochastic general equilibrium model with rational inattention by households and firms. Consumption responds slowly to interest rate changes because households decide to pay little attention to the real interest rate. Prices respond quickly to some shocks and slowly to other...
Persistent link: https://www.econbiz.de/10013127486
Cover Image
Nominal and real interest rates during an optimal disinflation in New Keynesian models.
Hagedorn, Marcus - 2008
Central bankers’ conventional wisdom suggests that nominal interest rates should be raised to implement a lower inflation target. In contrast, I show that the standard New Keynesian monetary model predicts that nominal interest rates should be decreased to attain this goal. Real interest...
Persistent link: https://www.econbiz.de/10011604924
Cover Image
Nominal and Real Interest Rates During an Optimal Disinflation in New Keynesian Models
Hagedorn, Marcus - 2008
Central bankers' conventional wisdom suggests that nominal interest rates should be raised to implement a lower inflation target. In contrast, I show that the standard New Keynesian monetary model predicts that nominal interest rates should be decreased to attain this goal. Real interest rates,...
Persistent link: https://www.econbiz.de/10012772496
Cover Image
Adaptive Learning, Persistence, and Optimal Monetary Policy
Gaspar, Vítor; Smets, Frank; Vestin, David - 2021
We show that, when private sector expectations are determined in line with adaptive learning, optimal policy responds … expectations resemble optimal policy under commitment and rational expectations. Nevertheless, it is clear that the mechanism at … play is very different. In the case of commitment it relies on expectations of future policy actions affecting inflation …
Persistent link: https://www.econbiz.de/10013317572
Cover Image
Learning, uncertainty and central bank activism in an economy with strategic interactions
Ellison, Martin; Valla, Natacha - 2000
expectations, which is detrimental to welfare. …
Persistent link: https://www.econbiz.de/10011604074
Cover Image
Business cycle dynamics under rational inattention
Maćkowiak, Bartosz; Wiederholt, Mirko - 2011
We develop a dynamic stochastic general equilibrium model with rational inattention by households and firms. Consumption responds slowly to interest rate changes because households decide to pay little attention to the real interest rate. Prices respond quickly to some shocks and slowly to other...
Persistent link: https://www.econbiz.de/10011605377
Cover Image
Households' response to the wealth effects of inflation
Schnorpfeil, Philip; Weber, Michael; Hackethal, Andreas - 2024
We study the redistributive effects of surprise inflation combining administrative bank data with an information provision experiment during an episode of historic inflation. On average, households are well-informed about prevailing inflation and are concerned about its impact on their wealth;...
Persistent link: https://www.econbiz.de/10014543616
Cover Image
ECB communication as a stabilization and coordination device: Evidence from ex-ante inflation uncertainty
Fernandes, Cecilia Melo - 2021
This paper investigates the impact of ECB communication of its assessment of the economic outlook on ex-ante inflation uncertainty and sheds light on how central bank information shocks operate. The paper finds that ECB communication of new outlook information not only reduces professional...
Persistent link: https://www.econbiz.de/10012605278