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Firm inattention and the efficacy of monetary policy : a text-based approach

Song, Wenting; Stern, Samuel - 2022 - Last updated: January 11, 2022

This paper provides direct evidence of the importance of firm attention to macro-economic dynamics. We construct a text-based measure of firm attention to macro-economic news and document firm attention that is polarized and countercyclical. Differences in attention lead to asymmetric responses...

Persistent link: https://www.econbiz.de/10012797080

Forward guidance and expectation formation : a narrative approach

Sutherland, Christopher S. - 2020 - Last updated: September 28, 2020

How forward guidance influences expectations is not yet fully understood. To study this issue, I construct central bank data that includes forward guidance and its attributes, central bank projections, and quantitative easing, which I combine with survey data. I find that, in response to a...

Persistent link: https://www.econbiz.de/10012291197

How do central bank projections and forward guidance influence private-sector forecasts?

Jain, Monica; Sutherland, Christopher S. - 2018

We construct a 23-country panel data set to consider the effect of central bank projections and forward guidance on private-sector forecast disagreement. We find that central bank projections and forward guidance matter mainly for private-sector forecast disagreement surrounding upcoming policy...

Persistent link: https://www.econbiz.de/10011777743

Endogenous credibility and wage-price spirals

Kostyshyna, Olena; Özden, Tolga; Zhang, Yang - 2024 - Last updated: May 14, 2024

Elevated inflation can threaten the credibility of central banks and increase the risk that inflation expectations do not remain anchored. Wage-price spirals might develop in such an environment, and high inflation could become entrenched. We quantitively assess the risks of a wage-price spiral...

Persistent link: https://www.econbiz.de/10014558998

Trading dynamics with adverse selection and search : market freeze, intervention and recovery

Chiu, Jonathan; Koeppl, Thorsten V. - 2011

increasing the size of the intervention. Search frictions are important for all these results. They compound adverse selection …

Persistent link: https://www.econbiz.de/10009387742

Dynamic privacy choices

Ichihashi, Shota - 2022 - Last updated: February 24, 2022

I study a dynamic model of consumer privacy and platform data collection. In each period, consumers choose their level of platform activity. Greater activity generates more information about the consumer, thereby increasing platform profits. When the platform can commit to the future privacy...

Persistent link: https://www.econbiz.de/10012886799

Money and price posting under private information

Dong, Mei; Jiang, Janet Hua - 2011

We study price posting with undirected search in a search-theoretic monetary model with divisible money and divisible … become cash constrained. Since inflation reduces the future purchasing power of money and the value of retaining money …, buyers tend to spend their money faster in response to higher inflation. In particular, more buyers choose to spend money and …

Persistent link: https://www.econbiz.de/10009315719

Macroeconomic experiences and risk taking of euro area households

Ampudia, Miguel; Ehrmann, Michael - 2014

This paper studies to what extent the experiences of households shape their willingness to take financial risks. It follows the methodology of Malmendier and Nagel (2011) and applies it to a novel data set on household finances covering euro area households. We show that experienced stock market...

Persistent link: https://www.econbiz.de/10010254328

The threat of counterfeiting in competitive search equilibrium

Shao, Enchuan - 2013

considering an alternative trading mechanism. Specifically, a competitive search environment is employed in which sellers post … offers and buyers direct their search based on those offers. In contrast to the previous studies, buyers' ability to signal … materialize, in that some buyers cannot observe the offers, and therefore search randomly. Counterfeit notes are produced by those …

Persistent link: https://www.econbiz.de/10009762123

Are sunspots learnable? : an experimental investigation in a simple general-equilibrium model

Arifovic, Jasmina; Evans, George W.; Kostyshyna, Olena - 2013

We conduct experiments with human subjects in a model with a positive production externality in which productivity is a non-decreasing function of the average level of employment of other firms. The model has three steady states: the low and high steady states are expectationally stable...

Persistent link: https://www.econbiz.de/10009746578