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Reading the Recent Monetary History of the U.S., 1959-2007

Fernández-Villaverde, Jesús - 2010

In this paper we report the results of the estimation of a rich dynamic stochastic general equilibrium (DSGE) model of the U.S. economy with both stochastic volatility and parameter drifting in the Taylor rule. We use the results of this estimation to examine the recent monetary history of the...

Persistent link: https://www.econbiz.de/10012462722

Supply-Side Policies and the Zero Lower Bound

Fernández-Villaverde, Jesús - 2011

This paper examines how supply-side policies may play a role in fighting a low aggregate demand that traps an economy at the zero lower bound (ZLB) of nominal interest rates. Future increases in productivity or reductions in mark-ups triggered by supply-side policies generate a wealth effect...

Persistent link: https://www.econbiz.de/10012461115

Monetary Versus Macroprudential Policies : Causal Impacts of Interest Rates and Credit Controls in the Era of the UK Radcliffe Report

Aikman, David - 2016

We have entered a world of conjoined monetary and macroprudential policies. But can they function smoothly in tandem, and with what effects? Since this policy cocktail has not been seen for decades, the empirical evidence is almost non-existent. We can only fix this shortcoming in a historical...

Persistent link: https://www.econbiz.de/10012456297

Betting the House

Jordà, Òscar - 2014

Is there a link between loose monetary conditions, credit growth, house price booms, and financial instability? This paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of modern economic history in the advanced economies. We...

Persistent link: https://www.econbiz.de/10012457895

The Term Structure of Interest Rates in a DSGE Model with Recursive Preferences

van Binsbergen, Jules - 2010

We solve a dynamic stochastic general equilibrium (DSGE) model in which the representative household has Epstein and Zin recursive preferences. The parameters governing preferences and technology are estimated by means of maximum likelihood using macroeconomic data and asset prices, with a...

Persistent link: https://www.econbiz.de/10012462760

Real interest rates, credit markets, and economic stabilization

Jenkins, Paul; Walsh, Carl E. - 1985

Persistent link: https://www.econbiz.de/10003585366

Real Interest Rate, Credit Markets, and Economic Stabilization

Jenkins, Paul - 1985

The role of a real interest rate and a credit aggregate as intermediate monetary policy targets are investigated under the assumption of rational expectations. The analysis expands a standard aggregate model to include a credit market and a market determined interest rate on bank deposits. This...

Persistent link: https://www.econbiz.de/10012477509

Uncertainty Shocks and Business Cycle Research

Fernández-Villaverde, Jesús - 2020

We review the literature on uncertainty shocks and business cycle research. First, we motivate the study of uncertainty shocks by documenting the presence of time-variation in the volatility of macroeconomic time series. Second, we enumerate the mechanisms that researchers have postulated to...

Persistent link: https://www.econbiz.de/10012479292

After the Panic : Are Financial Crises Demand or Supply Shocks? Evidence from International Trade

Benguria, Felipe - 2019

Are financial crises a negative shock to demand or a negative shock to supply? This is a fundamental question for both … empirical time series record, and they divide sharply between each type of shock. Household deleveraging shocks are mainly … exchange rate depreciates. History shows that, on average, financial crises are very clearly a negative shock to demand …

Persistent link: https://www.econbiz.de/10012479740

Financial Frictions and the Wealth Distribution

Fernández-Villaverde, Jesús - 2019

particular, we find that the recovery after a negative aggregate shock is more sluggish when the economy is more leveraged …

Persistent link: https://www.econbiz.de/10012480247