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Expectations, monetary policy, and labor markets : lessons from the Great Depression

Reicher, Christopher Phillip - 2009

This paper estimates a series of shocks to hit the US economy during the Great Depression, using a New Keynesian model with unemployment and bargaining frictions. Shocks to long-run inflation expectations appear to account for much of the cyclical behavior of employment, while an increase in...

Persistent link: https://www.econbiz.de/10003872040

Monetary policy and Swedish unemployment fluctuations

Alexius, Annika (contributor); Holmlund, Bertil (contributor) - 2007

preferred model, almost 30 percent of the maximum effect of a shock still remains after ten years. …

Persistent link: https://www.econbiz.de/10003484676

Labour market asymmetries in a monetary union

Andersen, Torben M. (contributor); … - 2007

This paper takes a first step in analysing how a monetary union performs in the presence of labour market asymmetries. Differences in wage flexibility, market power and country sizes are allowed for in a setting with both country-specific and aggregate shocks. The implications of asymmetries for...

Persistent link: https://www.econbiz.de/10003484914

Real wages and monetary policy transmission in the euro area

McCallum, Andrew (contributor); Smets, Frank (contributor) - 2007

We use the Factor-Augmented Vector Autoregression (FAVAR) approach of Bernanke, Boivin and Eliasz (2005) to estimate the effects of monetary policy shocks on wages and employment in the euro area. The use of a large data set comprising country, sectoral and euro area-wide data allows us to...

Persistent link: https://www.econbiz.de/10003486502

A tale of two policies : prudential regulation and monetary policy with fragile banks

Angeloni, Ignazio; Faia, Ester - 2009

We introduce banks, modeled as in Diamond and Rajan (JoF 2000 or JPE 2001), into a standard DSGE model and use this framework to study the role of banks in the transmission of shocks, the effects of monetary policy when banks are exposed to runs, and the interplay between monetary policy and...

Persistent link: https://www.econbiz.de/10003929248

Price bargaining, the persistence puzzle, and monetary policy

Wesselbaum, Dennis - 2010

In the recent New Keynesian literature a standard assumption is that the price for which an intermediate good is sold to the final good firm is equal to the marginal costs of the intermediate good firm. However, there is empirical evidence that this need not to hold. This paper introduces price...

Persistent link: https://www.econbiz.de/10003971894

How resilient is the German banking system to macroeconomic shocks?

Dovern, Jonas (contributor); … - 2008

Macro-stress testing studies often rely on rather short sample periods due to the limited availability of banking data. They may fail to appropriately account for the cyclicality in the interaction between the banking system and macroeconomic developments. In this paper we use a newly...

Persistent link: https://www.econbiz.de/10003694087

Monetary persistence and the labor market : a new perspective

Lechthaler, Wolfgang (contributor); … - 2008

that the employment rate is slow to converge to its steady state value after a monetary shock. Under reasonable … calibrations, the after-effects of a shock continue to exert an effect on the labor market even long after the shock is over. The … sluggishness of the labor market translates to the product market and thus the output effects of the monetary shock become more …

Persistent link: https://www.econbiz.de/10003665644

Uncertainty shocks, banking frictions, and economic activity

Bonciani, Dario; Roye, Björn van - 2013

In this paper we investigate the effects of uncertainty shocks on economic activity using a Dynamic Stochastic General Equilibrium (DSGE) model with heterogenous agents and a stylized banking sector. We show that frictions in credit supply amplify the effects of uncertainty shocks on economic...

Persistent link: https://www.econbiz.de/10009761866

Spillover effects from euro area monetary policy across the EU : a factor-augmented VAR approach

Potjagailo, Galina - 2016

variables. An expansionary Euro area monetary policy shock raises production in most non-Euro area countries. Somewhat larger …

Persistent link: https://www.econbiz.de/10011440779