Showing 1 - 7 of 7
This article investigates the business cycle implications of the planning phase of business investment projects. Time to plan is built into a Kydland-Prescott time-to-build model, which assumes that investment projects take four periods to complete. In the Kydland-Prescott time-to-build model,...
Persistent link: https://www.econbiz.de/10005360826
There is widespread agreement that a surprise increase in an economy's money supply drives the nominal interest rate down and economic activity up, at least in the short run. This is understood as reflecting the dominance of the liquidity effect of a money shock over an opposing force, the...
Persistent link: https://www.econbiz.de/10005360830
Persistent link: https://www.econbiz.de/10005360832
Persistent link: https://www.econbiz.de/10005360849
This paper evaluates Hayashi's conjecture that Japan's postwar saving experience can be accounted for by the neoclassical model of economic growth as that country's efforts to reconstruct its capital stock that was severely damaged in World War II. I call this the reconstruction hypothesis. I...
Persistent link: https://www.econbiz.de/10005360857
This paper describes and evaluates P-Star (P*), a new method to forecast inflation trends which was introduced by the Federal Reserve Board of Governors in the summer of 1989. The paper examines how well P* would have done, compared with eight other forecasting methods, had all of these methods...
Persistent link: https://www.econbiz.de/10005707903
This study analyzes two monetary economies, a cash-credit good model and a limited-participation model. In these models, monetary policy is made by a benevolent policymaker who cannot commit to future policies. The study defines and analyzes Markov equilibrium in these economies and shows that...
Persistent link: https://www.econbiz.de/10005491112