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Imperfect monitoring and the discounting of inside money

David C. Mills, Jr. - Federal Reserve Board (Board of Governors of the … - 2007

One of the fundamental questions concerning inside money is whether its issuers should be regulated and how. This paper … evaluates the efficiency of one prevalent regulatory recommendation -- a requirement that private issuers redeem inside money on … demand at par -- in a random-matching model of money where the issuers of inside money are only imperfectly monitored. I find …

Persistent link: https://www.econbiz.de/10005393963

Solving stochastic money-in-the-utility-function models

Nesmith, Travis D. - Federal Reserve Board (Board of Governors of the … - 2005

This paper analyzes the necessary and sufficient conditions for solving money-in-the-utility-function models when …

Persistent link: https://www.econbiz.de/10005394065

Currency ratios and U.S. underground economic activity

Porter, Richard D.; Weinbach, Gretchen C. - Federal Reserve Board (Board of Governors of the … - 1998

Cagan's classic currency ratio suggests that underground economic activity in the U.S. surged starting in 1994. In contrast, we show that a ratio adjusted to take care of two distorting developments -- retail sweep programs and overseas demand for U.S. currency -- did not surge, and that...

Persistent link: https://www.econbiz.de/10005394168

Credit-Market Sentiment and the Business Cycle

Lopez-Salido, J. David; Stein, Jeremy C.; Zakrajsek, Egon - Federal Reserve Board (Board of Governors of the … - 2015

Using U.S. data from 1929 to 2013, we show that elevated credit-market sentiment in year t-2 is associated with a decline in economic activity in years t through t+2. Underlying this result is the existence of predictable mean reversion in credit-market conditions. That is, when our sentiment...

Persistent link: https://www.econbiz.de/10011273704

The unreliability of credit-to-GDP ratio gaps in real-time: Implications for countercyclical capital buffers

Edge, Rochelle M.; Meisenzahl, Ralf R. - Federal Reserve Board (Board of Governors of the … - 2011

Macroeconomists have long recognized that activity-gap measures are unreliable in real time and that this can present serious difficulties for stabilization policy. This paper investigates whether the credit-to-GDP ratio gap, which has been proposed as a reference point for accumulating...

Persistent link: https://www.econbiz.de/10009292960

Idiosyncratic investment risk and business cycles

Goldberg, Jonathan E. - Federal Reserve Board (Board of Governors of the … - 2014

I show that, due to imperfect risk sharing, aggregate shocks to uncertainty about idiosyncratic return on investment generate economic contractions with elevated risk premia and a decrease in the risk-free rate. I present a tractable real business cycle model in which firms experience...

Persistent link: https://www.econbiz.de/10010784162

Endogenous business cycles and the dynamics of output, hours, and consumption

Schmitt-Grohe, Stephanie - Federal Reserve Board (Board of Governors of the … - 1998

This paper studies the business-cycle fluctuations predicted by a two-sector endogenous-business-cycle model with sector-specific external increasing returns to scale. It focuses on aspects of actual fluctuations that have been identified both as defining features of the business cycle and as...

Persistent link: https://www.econbiz.de/10005721004

Monetary policy, business cycles and the behavior of small manufacturing firms

Gertler, Mark; Gilchrist, Simon - Federal Reserve Board (Board of Governors of the … - 1993

Persistent link: https://www.econbiz.de/10005721009

Ex ante turning point forecasting with the composite leading index

Diebold, Francis X.; Rudebusch, Glenn D. - Federal Reserve Board (Board of Governors of the … - 1988

Persistent link: https://www.econbiz.de/10005721081

Product innovation and the business cycle

Jovanovic, Boyan; Lach, Saul - Federal Reserve Board (Board of Governors of the … - 1995

Persistent link: https://www.econbiz.de/10005721084