Showing 1 - 10 of 135
This paper isolates the role of conflict or disagreement on inflation in two ways. In the first part of the paper, we present a stylized model, kept purposefully away from traditional macro models. Inflation arises despite the complete absence of money, credit, interest rates, production, and...
Persistent link: https://www.econbiz.de/10014250117
This paper studies how household inequality shapes the effects of the zero lower bound (ZLB) on nominal interest rates on aggregate dynamics. To do so, we consider a heterogeneous agent New Keynesian (HANK) model with an occasionally binding ZLB and solve for its fully non-linear stochastic...
Persistent link: https://www.econbiz.de/10014287383
We provide a first look into the drivers of household cryptocurrency investing. Analyzing consumer transaction data for millions of U.S. households, we find that, except for high income early adopters, cryptocurrency investors resemble the general population. These investors span all income...
Persistent link: https://www.econbiz.de/10014436987
rapid transitions from stickiness to flexibility, as sellers elect to reset their prices and abandon anchoring. The paper …
Persistent link: https://www.econbiz.de/10014247946
I discuss private and central-bank-issued digital currencies, summarizing my prior research. I argue that prices of …
Persistent link: https://www.econbiz.de/10014486250
Congressional intent concerning the independence of the Federal Reserve matters because it protects the public from the politicization of monetary policy. Attempts to subordinate monetary policy to the President could easily end up in front of the Supreme Court. The outcome of such a case would...
Persistent link: https://www.econbiz.de/10015145125
this research, anchored on the role of relative prices' changes during the adjustment process …
Persistent link: https://www.econbiz.de/10014447249
We present evidence that noisy financial flows influence financial conditions and macroeconomic activity. How should monetary policy respond to this noise? We develop a model where it is optimal for the central bank to target and (partially) stabilize financial conditions beyond their direct...
Persistent link: https://www.econbiz.de/10015145157
Capitalism since its inception has been marked by large fluctuations. The resulting episodic unemployment has been very costly. This paper provides an overview of alternative theories. Standard models (such as DSGE) have not provided insights into the causes of the fluctuations and the shocks...
Persistent link: https://www.econbiz.de/10015171621
This paper studies the implications of household heterogeneity for the effectiveness of quantitative easing (QE). We consider a heterogeneous agent New Keynesian (HANK) model with uninsurable household income risk. Financial intermediaries are subject to an endogenous leverage constraint that...
Persistent link: https://www.econbiz.de/10013361984