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Information flows and aggregate persistence

Kryvtsov, Oleksiy - 2009

Models with imperfect information that generate persistent monetary nonneutrality predominantly rely on assumptions leading to substantial heterogeneity of information across price-setters. This paper develops a quantitative general equilibrium model in which the degree of heterogeneity of...

Persistent link: https://www.econbiz.de/10003823147

Risk premium shocks and the zero bound on nominal interest rates

Amano, Robert A.; Shukayev, Malik - 2009

There appears to be a disconnect between the importance of the zero bound on nominal interest rates in the real-world and predictions from quantitative DSGE models. Recent economic events have reinforced the relevance of the zero bound for monetary policy whereas quantitative models suggest that...

Persistent link: https://www.econbiz.de/10003933335

Inventories, markups and real rigidities in sticky price models of the Canadian economy

Kryvtsov, Oleksiy; Midrigan, Virgiliu - 2011

Recent New Keynesian models of macroeconomy view nominal cost rigidities, rather than nominal price rigidities, as the key feature that accounts for the observed persistence in output and inflation. Kryvtsov and Midrigan (2010a,b) reassess these conclusions by combining a theory based on nominal...

Persistent link: https://www.econbiz.de/10008859202

Transmission of shocks to the Chinese economy in a global context : a model-based approach

Bailliu, Jeannine N.; Blagrave, Patrick - 2010

To better understand the dynamics of the Chinese economy and its interaction with the global economy, the authors incorporate China into an existing model for the G-3 economies (i.e., the United States, the euro area, and Japan), paying particular attention to modelling the exchange rate and...

Persistent link: https://www.econbiz.de/10003996844

Financial stress, monetary policy, and economic activity

Li, Fuchun; St-Amant, Pierre - 2010

This paper examines empirically the impact of financial stress on the transmission of monetary policy shocks in Canada. The model used is a threshold vector autoregression in which a regime change occurs if financial stress conditions cross a critical threshold. Using the financial stress index...

Persistent link: https://www.econbiz.de/10003981316

Housing market dynamics and macroprudential policy

Bruneau, Gabriel; Christensen, Ian; Meh, Césaire Assah - 2016

We perform an analysis to determine how well the introduction of a countercyclical loanto- value (LTV) ratio can reduce household indebtedness and housing price fluctuations compared with a monetary policy rule augmented with house price inflation. To this end, we construct a New Keynesian model...

Persistent link: https://www.econbiz.de/10011517031

Output comovement and inflation dynamics in a two-sector model with durable goods : the role of sticky information and heterogeneous factor markets

Kitamura, Tomiyuki; Takamura, Tamon - 2016

output of durable and nondurable goods following a monetary policy shock. We show that heterogeneous factor markets allow any …

Persistent link: https://www.econbiz.de/10011517128

A new measure of monetary policy shocks

Zhang, Xu - 2021 - Last updated: June 21, 2021

Federal Reserve's information set as in Romer and Romer (2004), I propose a new method of constructing a monetary policy shock … that occurs on Federal Reserve announcement days. I provide substantial evidence that the new monetary policy shock is … consistent with the predictions of workhorse macroeconomic models for structural monetary policy shocks. The new shock has large …

Persistent link: https://www.econbiz.de/10012546138

Exports and the exchange rate : a general equilibrium perspective

Alexander, Patrick; Reza, Abeer - 2022 - Last updated: April 4, 2022

aim of uncovering a single structural parameter, but theory suggests it could differ depending on the shock that drives … exports relative to the response of the exchange rate, conditional on each shock. Our findings suggest that this relationship … differs greatly from one shock to another, where domestic shocks generate a much weaker relationship than global shocks. We …

Persistent link: https://www.econbiz.de/10013172465

Monetary policy spillover to small open economies: is the transmission different under low interest rates?

Cao, Jin; Dinger, Valeriya; Gómez, Tomás; Gric, Zuzana; … - 2021 - Last updated: November 30, 2021

We explore the impact of low and negative monetary policy rates in core world economies on bank lending in four small open economies-Canada, Chile, the Czech Republic and Norway- using confidential bank-level data. Our results show that the impact on lending in these small open economies depends...

Persistent link: https://www.econbiz.de/10012694547