Similar Search Results

Monetary Policy and Rational Asset Price Bubbles

Galí, Jordi - 2013

I examine the impact of alternative monetary policy rules on a rational asset price bubble, through the lens of an overlapping generations model with nominal rigidities. A systematic increase in interest rates in response to a growing bubble is shown to enhance the fluctuations in the latter,...

Persistent link: https://www.econbiz.de/10013086674

The Optimal Inflation Target and the Natural Rate of Interest

Andrade, Philippe - 2018

We study how changes in the value of the steady-state real interest rate affect the optimal inflation target, both in the U.S. and the euro area, using an estimated New Keynesian DSGE model that incorporates the zero (or effective) lower bound on the nominal interest rate. We find that this...

Persistent link: https://www.econbiz.de/10012927026

Labor Markets and Monetary Policy : A New-Keynesian Model with Unemployment

Blanchard, Olivier J. - 2010

We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications for the unemployment-inflation tradeoff and for the conduct of monetary policy.lt;brgt;lt;brgt;We proceed in two steps. We first leave nominal rigidities aside. We show that,...

Persistent link: https://www.econbiz.de/10012759440

Macroeconomic Modeling for Monetary Policy Evaluation

Galí, Jordi - 2010

central bank of tracking of the flexible price equilibrium values of the natural levels of output and the real interest rate …

Persistent link: https://www.econbiz.de/10012759756

Central Bank Credibility Before and after the Crisis

Bordo, Michael D. - 2015

estimate of the inflation rate that the central bank targets. The target is assumed to be met flexibly. Credibility is … calculated for a large group of both advanced and emerging countries from 1980 to 2014. Financial crises reduce central bank …-2008 financial crisis. The VIX, adopting an inflation target and central bank transparency, are the most reliable determinants of …

Persistent link: https://www.econbiz.de/10013011938

The Transformation and Performance of Emerging Market Economies Across the Great Divide of the Global Financial Crisis

Bordo, Michael D. - 2019

The process of central bank (CB) evolution by emerging market economies (EMEs), including central bank independence …

Persistent link: https://www.econbiz.de/10012861733

The Effects of Monetary Policy on Stock Market Bubbles : Some Evidence

Galí, Jordi - 2014

We estimate the response of stock prices to exogenous monetary policy shocks using a vector-autoregressive model with time-varying parameters. Our evidence points to protracted episodes in which, after a short-run decline, stock prices increase persistently in response to an exogenous tightening...

Persistent link: https://www.econbiz.de/10013056857

Central Bank Credibility, Reputation and Inflation Targeting in Historical Perspective

Bordo, Michael D. - 2014

This paper examines the historical evolution of central bank credibility using both historical narrative and empirics … financial stability relying on macro prudential regulation may pose significant challenges for central bank credibility …

Persistent link: https://www.econbiz.de/10013043621

Monetary Policy Rules and Macroeconomic Stability : Evidence and Some Theory

Clarida, Richard; Galí, Jordi; Gertler, Mark - 2021

We estimate a forward-looking monetary policy reaction function for the postwar US economy, pre- and post-October 1979. Our results point to substantial differences in the estimated rule across periods. In particular, interest rate policy in the Volcker-Greenspan period appears to have been much...

Persistent link: https://www.econbiz.de/10013216854

Monetary Policy Rules in Practice : Some International Evidence

Clarida, Richard; Galí, Jordi; Gertler, Mark - 2021

This paper reports estimates of monetary policy reaction functions for two sets of" countries: the G3 (Germany, Japan, and the U.S.) and the E3 (UK, France that since 1979 each of the G3 central banks has pursued an implicit form of inflation targeting which may account for the broad success of...

Persistent link: https://www.econbiz.de/10013217203