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A Case Where Barro Expectations Are Not Rational
Schlicht, Ekkehart - 2012
This note generalizes Feldstein’s (1976) criticism of Barro’s(1974) analysis for the case that the interest rate exceeds the growth rate. This is done by considering an economy in steady state where all agents hold “Barro expectations”: they believe that government debt must necessarily...
Persistent link: https://www.econbiz.de/10010427647
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A case where Barro expectations are not rational
Schlicht, Ekkehart - 2012
The paper generalizes Feldstein's criticism (Perceived Wealth in Bonds and Social Security, 1976) of Barro's analysis (Are Government Bonds Real Net Wealth?, 1974) for the case that the interest rate exceeds the growth rate. This is done by considering an economy in steady state where all agents...
Persistent link: https://www.econbiz.de/10010308120
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The damage from clean floats: From an anti-inflationary monetary policy
Pope, Robin; Selten, Reinhard; Kaiser, Johannes; Kube, … - 2007
embeds a new theory of exchange rate determination involving the uncontroversial power of fully cooperating central banks to … totally fix the exchange rate. The new model is within a broader theory that includes risk effects normally excluded, SKAT …, the Stages of Knowledge Ahead Theory. We use SKAT to analyse outliers in our experimental results, and indicate some new …
Persistent link: https://www.econbiz.de/10010274161
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Exchange Rate Expectations Redux and Monetary Policy
Pierdzioch, Christian - 2002
This paper uses a dynamic general equilibrium optimizing two-country model to analyze how the formation of exchange rate expectations shapes the effects of monetary policy shocks in open economies. The model implies that the short-run output effects of permanent monetary policy shocks diminish...
Persistent link: https://www.econbiz.de/10010260510
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The excess volatility of foreign exchange rates: Statistical puzzle or theoretical artifact?
Hauswald, Robert B. H. - 1999
The inability to reconcile observed levels of foreign exchange rate volatility with predictions derived from rational expectations models represents one of the most persistent challenges in international finance. This paper shows that such excess volatility puzzles arise from informational...
Persistent link: https://www.econbiz.de/10010301314
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Does trade integration alter monetary policy transmission?
Cwik, Tobias J.; Müller, Gernot J.; Wolters, Maik H. - 2008
This paper explores the role of trade integrationor opennessfor monetary policy transmission in a medium-scale New Keynesian model. Allowing for strategic complementarities in price-setting, we highlight a new dimension of the exchange rate channel by which monetary policy directly impacts...
Persistent link: https://www.econbiz.de/10010303676
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Mitigating Double Taxation in an Open Economy
Lindhe, Tobias - 2001
The interaction of various methods of mitigating economic and international double taxation of corporate source income is studied within a standard neoclassical model of firm behavior. The main purpose is to determine to what extent methods effective in mitigating economic double taxation in a...
Persistent link: https://www.econbiz.de/10010321707
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What is global excess liquidity, and does it matter?
Rüffer, Rasmus; Stracca, Livio - 2006
This paper endeavours to provide a comprehensive analysis of the nature and the possible importance of “global excess liquidity”, a concept which has attracted considerable attention in recent years. The contribution of this paper is threefold. First, we present some conceptual discussion on...
Persistent link: https://www.econbiz.de/10011604742
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Cyclical occupational choice in a model with rational wage expectations and perfect occupational mobility
Felderer, Bernhard; Drost, André - 2000
In many professional labor markets the number of new workers follows a cyclical time path. This phenomenon is usually explained by means of a cobweb model that is based on the assumptions of myopic wage expectations and occupational immobility. Since both assumptions are questioned by the...
Persistent link: https://www.econbiz.de/10010292410
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On the Solution of Markov-switching Rational Expectations Models
Carravetta, Francesco; Sorge, Marco M. - 2011
observable states of the system, to be determined optimally via stochastic control and filtering theory. Solution existence is …
Persistent link: https://www.econbiz.de/10010293377