Narrow search
Showing 1 - 10 of 1,897
Cover Image
Helicopter Drops and Liquidity Traps
Amador, Manuel; Bianchi, Javier - National Bureau of Economic Research - 2023
We show that if the central bank operates without commitment and faces constraints on its balance sheet, helicopter drops can be a useful stabilization tool during a liquidity trap. With commitment, even with balance sheet constraints, helicopter drops are irrelevant
Persistent link: https://www.econbiz.de/10014247967
Cover Image
Fiscal Histories
Cochrane, John H. - National Bureau of Economic Research - 2022
The fiscal theory states that inflation adjusts so that the real value of government debt equals the present value of …
Persistent link: https://www.econbiz.de/10013361983
Cover Image
Monetary Policy without Commitment
Afrouzi, Hassan; Halac, Marina; Rogoff, Kenneth S.; … - National Bureau of Economic Research - 2023
This paper studies the implications of central bank credibility for long-run inflation and inflation dynamics. We introduce central bank lack of commitment into a standard non-linear New Keynesian economy with sticky-price monopolistically competitive firms. Inflation is driven by the...
Persistent link: https://www.econbiz.de/10014287308
Cover Image
The Fiscal Consequences of Missing an Inflation Target
Andreolli, Michele; Rey, Hélène - National Bureau of Economic Research - 2023
The European Central Bank is unique in setting monetary policy for several sovereign states with heterogeneous debt …
Persistent link: https://www.econbiz.de/10013537713
Cover Image
Optimal Monetary Policy with Heterogeneous Agents : Discretion, Commitment, and Timeless Policy
Dávila, Eduardo; Schaab, Andreas - National Bureau of Economic Research - 2023
This paper characterizes optimal monetary policy in a canonical heterogeneous-agent New Keynesian (HANK) model with wage rigidity. Under discretion, a utilitarian planner faces the incentive to redistribute towards indebted, high marginal utility households, which is a new source of inflationary...
Persistent link: https://www.econbiz.de/10014226158
Cover Image
Credibility and Explicit Inflation Targeting
King, Robert G.; Lu, Yang - National Bureau of Economic Research - 2022
In his 2004 inflation targeting manifesto, Marvin Goodfriend described US monetary policy as implicit inflation targeting and advocated explicit targeting. Summarizing the 1965-2000 US inflation experience, he highlighted the importance of evolving Fed credibility, which accords with our recent...
Persistent link: https://www.econbiz.de/10013210040
Cover Image
Monetary-Based Asset Pricing : A Mixed-Frequency Structural Approach
Bianchi, Francesco; Ludvigson, Sydney C.; Ma, Sai - National Bureau of Economic Research - 2022
We integrate a high-frequency monetary event study into a mixed-frequency macro-finance model and structural estimation. The model and estimation allow for jumps at Fed announcements in investor beliefs, providing granular detail on why markets react to central bank communications. We find that...
Persistent link: https://www.econbiz.de/10013210100
Cover Image
Inflation Past, Present and Future : Fiscal Shocks, Fed Response, and Fiscal Limits
Cochrane, John H. - National Bureau of Economic Research - 2022
, those must come with fiscal support to pay higher costs on the debt and a windfall to bondholders. Coordinated fiscal …
Persistent link: https://www.econbiz.de/10013210124
Cover Image
Navigating by Falling Stars : Monetary Policy with Fiscally Driven Natural Rates
Campos, Rodolfo G.; Fernández-Villaverde, Jesús; … - National Bureau of Economic Research - 2024
. Due to household heterogeneity, the stock of public debt affects the natural interest rate, forcing the central bank to … minimum level of debt below which the steady-state inflation deviates from its target due to the zero lower bound on nominal … rates. We analyze the response to a debt-financed fiscal expansion and quantify the impact of different timings in the …
Persistent link: https://www.econbiz.de/10014512073
Cover Image
Central Banking Post Crises
Kiley, Michael T.; Mishkin, Frederic S. - National Bureau of Economic Research - 2024
The world economy has experienced the largest financial crisis in generations, a global pandemic, and a resurgence in inflation during the first quarter of the 21st century, yielding important insights for central banking. Price stability has important benefits and is the responsibility of a...
Persistent link: https://www.econbiz.de/10014512091