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Understanding HANK : insights from a PRANK

Acharya, Sushant; Dogra, Keshav - 2018

affects determinacy: procyclical risk permits determinacy even under an interest rate peg, while countercyclical income risk …

Persistent link: https://www.econbiz.de/10011795425

Monetary policy implementation frameworks : a comparative analysis

Martin, Antoine (contributor); Monnet, Cyril (contributor) - 2008

We compare two stylized frameworks for the implementation of monetary policy. The first framework relies only on standing facilities, and the second one relies only on open market operations. We show that the Friedman rule cannot be implemented in the first framework, but can be implemented...

Persistent link: https://www.econbiz.de/10003781450

Optimal monetary policy under sudden stops

Cúrdia, Vasco (contributor) - 2008

Emerging market economies often face sudden stops in capital inflows or reduced access to the international capital market, a development that can cause serious disruptions in economic activity. This paper analyzes what monetary policy can accomplish in such an event. Optimal monetary policy...

Persistent link: https://www.econbiz.de/10003781480

Inflation dynamics in a small open-economy model under inflation targeting : some evidence from Chile

Del Negro, Marco (contributor); … - 2008

This paper estimates a small open-economy dynamic stochastic general equilibrium (DSGE) model, specified along the … use the DSGE-VAR methodology from our earlier work (2007) to assess the robustness of the conclusion to the presence of … model misspecification. -- Bayesian analysis ; small open-economy DSGE models ; model misspecification …

Persistent link: https://www.econbiz.de/10003781552

Central bank transparency and nonlinear learning dynamics

Eusepi, Stefano (contributor) - 2008

Central bank communication plays an important role in shaping market participants’ expectations. This paper studies a simple nonlinear model of monetary policy in which agents have incomplete information about the economic environment. It shows that agents’ learning and the dynamics of the...

Persistent link: https://www.econbiz.de/10003781685

Stabilizing expectations under monetary and fiscal policy coordination

Eusepi, Stefano (contributor); Preston, Bruce (contributor) - 2008

This paper analyzes how the formation of expectations constrains monetary and fiscal policy design. Economic agents have imperfect knowledge about the economic environment and the policy regime in place. Households and firms learn about the policy regime using historical data. Regime uncertainty...

Persistent link: https://www.econbiz.de/10003781690

Imperfectly credible disinflation under endogenous time-dependent pricing

Bonomo, Marco Antonio (contributor); … - 2008

The real effects of an imperfectly credible disinflation depend critically on the extent of price rigidity. In this paper, we examine how credibility affects the outcome of a disinflation in a model with endogenous time-dependent pricing rules. Both the endogenous initial degree of price...

Persistent link: https://www.econbiz.de/10003781797

CONDI : a cost-of-nominal-distortions index

Eusepi, Stefano (contributor); Hobijn, Bart (contributor); … - 2009

We construct a price index with weights for the prices of different PCE (personal consumption expenditures) goods chosen to minimize the welfare costs of nominal distortions. In this cost-of-nominal-distortions index (CONDI), the weights are computed in a multi-sector New Keynesian model with...

Persistent link: https://www.econbiz.de/10003812575

Bank liquidity, interbank markets, and monetary policy

Freixas, Xavier; Martin, Antoine; Skeie, David - 2009

A major lesson of the recent financial crisis is that the interbank lending market is crucial for banks that face uncertainty regarding their liquidity needs. This paper examines the efficiency of the interbank lending market in allocating funds and the optimal policy of a central bank in...

Persistent link: https://www.econbiz.de/10003864510

Prices and quantities in the monetary policy transmission mechanism

Adrian, Tobias; Shin, Hyun Song - 2009 - Rev.

Central banks have a variety of tools for implementing monetary policy, but the tool that has received the most attention in the literature has been the overnight interest rate. The financial crisis that erupted in the summer of 2007 has refocused attention on other channels of monetary policy,...

Persistent link: https://www.econbiz.de/10003947718

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