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We study optimal monetary policy in an analytically tractable Heterogeneous Agent New Keynesian model with rich cross-sectional heterogeneity. Optimal policy differs from that in a representative agent model because monetary policy can affect consumption inequality by reducing both idiosyncratic...
Persistent link: https://www.econbiz.de/10012705300
financial crisis shows that those economies with relatively better economic fundamentals were able to implement countercyclical …
Persistent link: https://www.econbiz.de/10010322619
This paper proposes a model that links households and firms, as usual, by markets for factors and goods and, additionally, by a banking sector that channels households' funds to firms and eliminates idiosyncratic risk. In equilibrium, agency costs and tax benefits of corporate debt are...
Persistent link: https://www.econbiz.de/10010265686
On 5-6 September 2012 SUERF held its 30th Colloquium “States, Banks, and the Financing of the Economy” at the University of Zürich, Switzerland. The papers included in this SUERF Study are based on contributions to the Colloquium. All the papers in this publication discuss from different...
Persistent link: https://www.econbiz.de/10011689959
of the five countries to the 2008 crisis was countercyclical. On the fiscal side, countries had a larger fiscal space in … indicators and a reduction in financing needs in the years before the crisis. On the monetary side, the capacity to implement … countercyclical responses in future crisis episodes, the fiscal authorities should reverse expansionary measures during good times nd …
Persistent link: https://www.econbiz.de/10011314077
crisis. Ideas, disagreement and similarities between the most important theories in relation to state intervention and anti-crisis … economic policy are presented. The topical research has found a connection between the roots of the global economic crisis and … the paradigm of new liberal theories. The crisis has confirmed that the idea of self-regulation in the private sector is …
Persistent link: https://www.econbiz.de/10012217879
the effectiveness of fiscal policy stimulus measures in a credit crisis. The paper explores alternative scenarios which …
Persistent link: https://www.econbiz.de/10011430871
The COVID-19 crisis is unique in many respects and, as the IMF (2021, p. 43) puts it: "a crisis like no other". A …, sectors and people were affected by the crisis is unusual in many respects. What is already visible is that national …
Persistent link: https://www.econbiz.de/10012595531
We build and estimate a novel TANK model with partially unfunded debt to study whether the record high debt-to-GDP ratio threatens US inflation stability. In response to business cycle shocks, the monetary authority controls inflation, and the fiscal authority stabilizes debt. The central bank...
Persistent link: https://www.econbiz.de/10013371382
This contribution assesses the functioning of Europe's Economic and Monetary Union (EMU) during the first 20 years of the euro's existence. It argues that two formative intellectual currents converged at Maastricht to shape the design and reception of the euro regime: ordoliberalism and...
Persistent link: https://www.econbiz.de/10014363379