Similar Search Results

Output gaps and robust monetary policy rules

Billi, Roberto M. - 2012

Policymakers often use the output gap, a noisy signal of economic activity, as a guide for setting monetary policy. Noise in the data argues for policy caution. At the same time, the zero bound on nominal interest rates constrains the central bank's ability to stimulate the economy during...

Persistent link: https://www.econbiz.de/10009532249

Price level targeting and risk management

Billi, Roberto M. - 2015

Many argue that, in the presence of a lower bound on nominal interest rates, central banks should use a risk management approach for setting policy, which implies commit- ting to a more expansionary policy to deal with uncertainty about the economic recovery. Using a standard model for monetary...

Persistent link: https://www.econbiz.de/10011287540

Nominal GDP targeting and the zero lower bound : should we abandon inflation targeting?

Billi, Roberto M. - 2013

I compare nominal GDP level targeting to flexible inflation targeting in a small New Keynesian model subject to the zero lower bound on nominal policy rates. First, I study the performance of optimal discretionary policies. I find that, for a standard calibration, inflation targeting under...

Persistent link: https://www.econbiz.de/10009761531

Price level targeting and risk management

Billi, Roberto M. - 2015 - Revised December 2016

Many argue that, because the outlook for the economy is uncertain, monetary policy should apply a risk management approach by raising the policy interest rate gradually from its lower bound. Using a small New Keynesian model, I study the impact of outlook uncertainty on the economic performance...

Persistent link: https://www.econbiz.de/10011901392

Distortionary fiscal policy and monetary policy goals

Adam, Klaus; Billi, Roberto M. - 2013

two authorities make policy decisions simultaneously, inflation conservatism causes fiscal overspending. But if fiscal … policy is determined before monetary policy, inflation conservatism imposes fiscal discipline. These results clarify that in … our setting the value of inflation conservatism depends crucially on the timing of policy decisions. …

Persistent link: https://www.econbiz.de/10010202952

Seemingly irresponsible but welfare improving fiscal policy at the lower bound

Billi, Roberto M.; Walsh, Carl E. - 2022

In this paper, we evaluate the consequences of super-active fiscal policy rules - that is, rules that call for tax cuts and/or spending increases as the government's debt level rises - in a standard New Keynesian model subject to an occasionally-binding zero lower bound on the monetary policy...

Persistent link: https://www.econbiz.de/10013161539

Inflation targeting or fiscal activism?

Billi, Roberto M. - 2022

I study the welfare performance of a policy regime of fiscal activism in which fiscal policy acts as an automatic stabilizer and controls inflation, while monetary policy pegs the nominal interest rate. When evaluated through the lens of a standard New Keynesian model, accounting for price and...

Persistent link: https://www.econbiz.de/10013161545

The role of money in monetary policy at the lower bound

Billi, Roberto M.; Söderström, Ulf; Walsh, Carl E. - 2020

In light of the current low-interest-rate environment, we reconsider the merit of a money growth target (MGT) relative to a conventional in ation targeting (IT) regime, and to the notion of price level targeting (PLT). Through the lens of a New Keynesian model, and accounting for a zero lower...

Persistent link: https://www.econbiz.de/10012229943

Gains from wage flexibility and the zero lower bound

Billi, Roberto M.; Galí, Jordi - 2019

We analyze the welfare impact of greater wage flexibility while taking into account explicitly the existence of the zero lower bound (ZLB) constraint on the nominal interest rate. We show that the ZLB constraint generally amplifies the adverse effects of greater wage flexibility on welfare when...

Persistent link: https://www.econbiz.de/10011990051

Unemployment fluctuations and nominal GDP targeting

Billi, Roberto M. - 2020

I evaluate the welfare performance of a target for the level of nominal GDP in a New Keynesian model with unemployment, accounting for a zero lower bound (ZLB) constraint on the nominal interest rate. Nominal GDP targeting is compared to employment targeting, a conventional Taylor rule, and the...

Persistent link: https://www.econbiz.de/10012161495