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Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy

Christiano, Lawrence J. - 2001

We present a model embodying moderate amounts of nominal rigidities which accounts for the observed inertia in inflation and persistence in output. The key features of our model are those that prevent a sharp rise in marginal costs after an expansionary shock to monetary policy. Of these...

Persistent link: https://www.econbiz.de/10012470317

Assessing the Effects of Fiscal Shocks

Burnside, Craig - 2000

This paper investigates the response of real wages and hours worked to an exogenous shock in fiscal policy. We identify this shock with the dynamic response of government purchases and tax rates to an exogenous increase in military purchases. The fiscal shocks that we isolate are characterized...

Persistent link: https://www.econbiz.de/10012471317

Monetary Policy Shocks : What Have We Learned and to What End?

Christiano, Lawrence J. - 1998

This paper reviews recent research that grapples with the question: What happens after an exogenous shock to monetary policy? We argue that this question is interesting because it lies at the center of a particular approach to assessing the empirical plausibility of structural economic models...

Persistent link: https://www.econbiz.de/10012472408

The Effects of Monetary Policy Shocks : Some Evidence from the Flow of Funds

Christiano, Lawrence J. - 1994

This paper uses the Flow of Funds accounts to assess the impact of a monetary policy shock on the borrowing and lending activities of different sectors of the economy. Our measures of contractionary monetary policy shocks have the following properties: (i) they are associated with a fall in...

Persistent link: https://www.econbiz.de/10012474229

Some Empirical Evidence on the Effects of Monetary Policy Shocks on Exchange Rates

Eichenbaum, Martin - 1993

This paper presents new empirical evidence on the effects of monetary policy shocks on U.S. exchange rates, both nominal and real. Three measures of monetary policy shocks are considered: orthogonalized shocks to the Federal Funds rate, the ratio of Non Borrowed to Total Reserves and the Romer...

Persistent link: https://www.econbiz.de/10012474691

Understanding the Volatility of the Canadian Exchange Rate

Eichenbaum, Martin - 2018

In this Commentary, we document the nature of the Bank of Canada's current monetary policy regime by focusing on the … findings reflect the fact Bank of Canada and the U.S. Federal Reserve System follow similar inflation-targeting regimes and … an important role in the process leading to the Bank of Canada's next five-year agreement with the government …

Persistent link: https://www.econbiz.de/10012927883

Long-Run Bulls and Bears

Albuquerque, Rui A. - 2017

A central challenge in asset pricing is the weak connection between stock returns and observable economic fundamentals. We provide evidence that this connection is stronger than previously thought. We use a modified version of the Bry-Boschan algorithm to identify long-run swings in the stock...

Persistent link: https://www.econbiz.de/10012972337

Monetary Policy and the Predictability of Nominal Exchange Rates

Eichenbaum, Martin - 2017

This paper studies how the monetary policy regime affects the relative importance of nominal exchange rates and inflation rates in shaping the response of real exchange rates to shocks. We document two facts about inflation-targeting countries. First, the current real exchange rate predicts...

Persistent link: https://www.econbiz.de/10012963169

Long-Run Bulls and Bears

Albuquerque, Rui A. - 2015

Persistent link: https://www.econbiz.de/10013030069

The Importance of Nontradable Goods' Prices in Cyclical Real Exchange Rate Fluctuations

Burstein, Ariel - 2005

Persistent link: https://www.econbiz.de/10012466973