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We analyse the use of current and forward-looking data in the setting of monetary policy (Taylor rule). We answer the question of whether the use of forward-looking data is to be preferred over the use of current data. We use a behavioural macroeconomic model that generates periods of...
Persistent link: https://www.econbiz.de/10013249662
We analyse the use of current and forward-looking data in the setting of monetary policy (Taylor rule). We answer the question of whether the use of forward-looking data is to be preferred over the use of current data. We use a behavioural macroeconomic model that generates periods of...
Persistent link: https://www.econbiz.de/10012420886
Persistent link: https://www.econbiz.de/10014316925
Persistent link: https://www.econbiz.de/10012219155
It is well-known that the high synchronization of the business cycles among industrial countries cannot easily be replicated in standard open economy macroeconomic models without assuming that the exogenous shocks hitting these countries are highly correlated. We develop a two-country behavioral...
Persistent link: https://www.econbiz.de/10011444133
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Persistent link: https://www.econbiz.de/10012172175
We use a behavioral macroeconomic model to analyze how structural reforms affect the economy in the short and in the long run. We consider two types of structural reforms. The first one increases the flexibility of wages and prices; the second one raises potential output in the economy. We find...
Persistent link: https://www.econbiz.de/10011663556
Persistent link: https://www.econbiz.de/10009126578
We develop a behavioral macroeconomic model in which agents use simple but biased rules to forecast future output and inflation. This model generates endogenous waves of optimism and pessimism ("Animal Spiritsʺ) that are generated by the correlation of biased beliefs. We contrast the dynamics...
Persistent link: https://www.econbiz.de/10003763301