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Macroeconomic and stock market interactions with endogenous aggregate sentiment dynamics
Flaschel, Peter; Charpe, Mattieu; Galanis, Giorgos; … - 2017
This paper studies the implications of heterogeneous capital gain expectations on output and asset prices. We consider a disequilibrium macroeconomic model where agents' expectations on future capital gains affect aggregate demand. Agents' beliefs take two forms - fundamentalist and chartist -...
Persistent link: https://www.econbiz.de/10011671937
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Dynamic effects of monetary policy shocks on macroeconomic volatility
Mumtaz, Haroon; Theodoridis, Konstantinos - 2015
Epstein-Zin preferences to study the volatility implications of a monetary policy shock. An unexpected increases in the policy … rate by 150 basis points causes output and inflation volatility to rise around 10% above their steady-state standard … deviations. VAR based empirical results support the model implications that contractionary shocks increase volatility. The …
Persistent link: https://www.econbiz.de/10011389786
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Long and Plosser meet Bewley and Lucas
Dong, Feng; Wen, Yi - 2018
We develop a N-sector business cycle network model a la Long and Plosser (1983), featuring heterogenous money demand a la Bewley (1980) and Lucas (1980). Despite incomplete markets and a well-defined distribution of real money balances across heterogeneous households, the enriched N-sector...
Persistent link: https://www.econbiz.de/10011911508
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Keep it simple : central bank communication and asset prices
Mumtaz, Haroon; Saleheen, Jumana; Spitznagel, Roxane - 2023 - This version: July 16, 2023
communication leads to greater asset price volatility than simple and clear communication. Central banks that want to avoid … generating volatility in financial markets should keep it simple. Our results suggest that by ignoring the type and style of …
Persistent link: https://www.econbiz.de/10014314314
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An exchange rate policy rule
Parrado, Eric - 2023
responds to inflation and output volatility, especially during economic crises. This framework offers a promising alternative …
Persistent link: https://www.econbiz.de/10014538995
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A monetary-fiscal theory of sudden inflations
Bassetto, Marco; Miller, David S. - 2022
This paper posits an information channel as the explanation for sudden inflations. Consumers saving via nominal government bonds face a choice whether to acquire costly information about future government surpluses. They trade off the cost of acquiring information about the surpluses that back...
Persistent link: https://www.econbiz.de/10013472118
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Optimal monetary policy under negative interest rate
Dong, Feng; Wen, Yi - 2017 - This version: May 16, 2017
In responding to the extremely weak global economy after the financial crisis in 2008, many industrial nations have been considering or have already implemented negative nominal interest rate policy. This situation raises two important questions for monetary theories: (i) Given the widely held...
Persistent link: https://www.econbiz.de/10011691605
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Disinflationary spillovers from the euro area into the countries of Southeastern Europe
Ramadani, Gani; Pandiloski, Predrag - 2019
We analyze the determinants of the inflation trends in ten Southeast European (SEE) countries. Global cost-related factors and euro area (EA) inflation developments play an important role in explaining inflation dynamics in SEE countries. Changes in world food and energy prices, together with...
Persistent link: https://www.econbiz.de/10012124587
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On the long-run unemployment, inflation, and volatility
Fasani, Stefano - 2021
volatility in ifln ation raises unemployment at low-frequency. Increased volatility in infl ation makes nominal wages more … guarantee the equilibrium in the labor market. The positive long-run co-movement between unemployment and infl ation volatility …
Persistent link: https://www.econbiz.de/10012429726
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Business cycle persistence in developing countries : how successful is a DSGE model with a vertical production chain and sticky prices?
Male, Rachel - 2010
It is well documented that business cycles of developed countries are characterised by persistent output fluctuations, and this has been the subject of much theoretical interest. However, the case for developing countries has been somewhat neglected in the literature. This paper addresses this...
Persistent link: https://www.econbiz.de/10008665125