Showing 1 - 10 of 136
Persistent link: https://www.econbiz.de/10001731309
In this paper we calculate robustly optimal monetary policy rules for several variants of a simple optimizing model of the monetary transmission mechanism with sticky prices and/or wages. We discuss representations of optimal policy both in terms of interest-rate feedback rules that generalize...
Persistent link: https://www.econbiz.de/10012469283
This paper proposes a general method for deriving an optimal monetary policy rule in the case of a dynamic linear rational-expectations model and a quadratic objective function for policy. A commitment to a rule of the type proposed results in a determinate equilibrium in which the responses to...
Persistent link: https://www.econbiz.de/10012469284
This lecture argues that the Global Financial Cycle is a challenge for the validity of the Mundellian trilemma. I present evidence that US monetary policy shocks are transmitted internationally and affect financial conditions even in inflation targeting economies with large financial markets....
Persistent link: https://www.econbiz.de/10012456820
I analyze whether countries with flexible exchange rates are able to pursue an independent monetary policy, as suggested by traditional theory. I use data for three Latin American countries with flexible exchange rates, inflation targeting, and capital mobility - Chile, Colombia and Mexico - to...
Persistent link: https://www.econbiz.de/10012457773
the ability of monetary policy to control inflation: by making liquidity premia a function of "global liquidity" rather … than the supply of liquidity by a national central bank alone; by making real interest rates dependent on the global …
Persistent link: https://www.econbiz.de/10012465321
We study whether a central bank should deviate from its objective of price stability to promote financial stability. We tackle this question within a textbook New Keynesian model augmented with capital accumulation and microfounded endogenous financial crises. We compare several interest rate...
Persistent link: https://www.econbiz.de/10012794628
We provide empirical evidence of a novel liquidity-based transmission mechanism through which monetary policy …
Persistent link: https://www.econbiz.de/10012480757
liquidity effects. This paper discusses the basic frictions and mechanisms underlying this new class of models and investigates … long-lasting, quantitatively significant liquidity effects, as well as persistent increases in aggregate economic activity …
Persistent link: https://www.econbiz.de/10012475008
Recent research provides evidence of important changes in the U.S. economic environment over the last 40 years. This appears to be associated with an alteration of the monetary transmission mechanism. In this paper we investigate the implications for the evolution of monetary policy...
Persistent link: https://www.econbiz.de/10012469244