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A large output gap accompanied by stable inflation close to its target calls for further monetary accommodation, but the zero lower bound on interest rates has robbed the Federal Open Market Committee (FOMC) of the usual tool for its provision. We examine how public statements of FOMC...
Persistent link: https://www.econbiz.de/10011027195
The Chicago Fed dynamic stochastic general equilibrium (DSGE) model is used for policy analysis and forecasting at the Federal Reserve Bank of Chicago. This article describes its specification and estimation, its dynamic characteristics and how it is used to forecast the US economy. In many...
Persistent link: https://www.econbiz.de/10010569172
Persistent link: https://www.econbiz.de/10010900582
We provide a simple explanation for the observation from the U.S. manufacturing sector that the job destruction rate fluctuates more than the job creation rate. In our model, proportional plant-level costs of creating and destroying jobs cause shrinking plants to be more sensitive to aggregate...
Persistent link: https://www.econbiz.de/10005757328
This paper studies how idiosyncratic productivity risk impacts aggregate employment dynamics when there is a trade-off between workers' productivity and costs of job creation and destruction. In our analysis, increasing idiosyncratic risk induces a producer to move workers out of structured jobs...
Persistent link: https://www.econbiz.de/10005069625
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This article shows how a new methodology for constructing the Chicago Fed National Activity Index (CFNAI) can be used to identify both the cyclical (medium-run) and trend (long-run) components of real gross domestic product (GDP) growth.
Persistent link: https://www.econbiz.de/10010725082
The model of league conduct formulated by Ferguson, Jones, and Stewart (2000) contains an algebraic error. This note provides the relevant correction and shows that the empirical results given in their article are robust to it.
Persistent link: https://www.econbiz.de/10005750318
We use a quantitative equilibrium model with houses, collateralized debt and foreign borrowing to study the impact of global imbalances on the U.S. economy in the 2000s. Our results suggest that the dynamics of foreign capital flows account for between one fourth and one third of the increase in...
Persistent link: https://www.econbiz.de/10010969208
As such, this represents a DSGE framework that can be used to analyze the effects of macroeconomic shocks, as well as systematic and unsystematic monetary policy on the yield curve.
Persistent link: https://www.econbiz.de/10010856667