Similar Search Results

Optimal Macroprudential Policy and Asset Price Bubbles

Biljanovska, Nina - 2019

An asset bubble relaxes collateral constraints and increases borrowing by credit-constrained agents. At the same time, as the bubble deflates when constraints start binding, it amplifies downturns. We show analytically and quantitatively that the macroprudential policy should optimally respond...

Persistent link: https://www.econbiz.de/10012862442

Informality, Frictions, and Macroprudential Policy

Hassine, Moez Ben - 2020

We analyze the effects of macroprudential policies through the lens of an estimated dynamic stochastic general equilibrium (DSGE) model tailored to developing markets. In particular, we explicitly introduce informality in the labor and goods markets within a small open economy embedding...

Persistent link: https://www.econbiz.de/10012843520

Demand deficiency and inflation in the G7 countries

Başçı, Erdem; Başçı, Sıdıka - In: International econometric review 13 (2021) 3, pp. 59-70

In this paper, we analyze the relationship between nominal and real GDP growth for G7 countries for the period 1971 - 2018. A visual inspection of the data indicates the presence of a threshold, above which the structure of the relationship between nominal and real GDP growth rates changes from...

Persistent link: https://www.econbiz.de/10012816136

What Happens If Central Banks Misdiagnose a Slowdown in Potential Output

Bakker, Bas Berend - 2019

issue. We show that aggressive central bank action may revive gross investment, but it will not revive net investment or …

Persistent link: https://www.econbiz.de/10012859859

National accounts revisions and output gap estimates in a model of monetary policy with data uncertainty

Mahadeva, Lavan (contributor); Muscatelli, Alex (contributor) - 2005

hindsight and decreasing measurement errors through time. Our optimal control experiments reveal that monetary policy makers …

Persistent link: https://www.econbiz.de/10003384150

Output Gap Uncertainty and Real-Time Monetary Policy

Grigoli, Francesco - 2015

Output gap estimates are subject to a wide range of uncertainty owing to data revisions and the difficulty in distinguishing between cycle and trend in real time. This is important given the central role in monetary policy of assessments of economic activity relative to capacity. We show that...

Persistent link: https://www.econbiz.de/10013027622

Productivity Measurement and Monetary Policymaking During the 1990s

Anderson, Richard G.; Kliesen, Kevin L. - 2005

The acceleration of productivity growth during the latter half of the 1990s was both the defining economic event of the decade and a major topic of debate among Federal Reserve policymakers. A key aspect of the debate was the conflict between incoming aggregate data, which initially suggested...

Persistent link: https://www.econbiz.de/10014061525

Bewley Banks

Jamilov, Rustam; Monacelli, Tommaso - 2021

, incomplete markets, default risk, endogenous bank entry, and aggregate uncertainty. The model generates a bank net worth … distributions of bank net worth and leverage, which are endogenous time-varying objects. Aggregate shocks to banks' balance sheets … recessions, spikes in bank leverage, and large drops in the number of intermediaries …

Persistent link: https://www.econbiz.de/10013236156

Unobserved components model(s) : output gaps and financial cycles

Guillochon, Justine; Le Roux, Julien - 2023

The Global Financial Crisis established that policymakers should consider the stage of the financial cycle to better evaluate the cyclical position of the economy when designing monetary policy decisions. If financial variables are omitted from the estimations of the output gap, a common and...

Persistent link: https://www.econbiz.de/10014343145

Liquidity risk and banks' asset composition : implications for monetary policy

Ghossoub, Edgar - In: Southern economic journal 77 (2010) 2, pp. 465-481

Persistent link: https://www.econbiz.de/10008735701