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Using an overlapping generations model in which the young save for old age using indexed and nominal government bonds, this paper investigates how optimal indexation is influenced by monetary policy. In order to do so, two monetary policies with markedly different long run implications are...
Persistent link: https://www.econbiz.de/10008806362
Since the 1970s, income risk faced by households has increased and monetary policy transmission has become weaker. I … investigate the role of income risk in weakening monetary policy transmission. I first show analytically that increased income … risk weakens the substitution effect of interest rate changes but amplifies the income effect from wage changes. The first …
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, understanding and cognitive constructs related to money, banks and savings were particularly analysed to be substantially …
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How do households perceive the forecasting performance of the central bank? Using two novel experiments embedded in the Bundesbank's Survey on Consumer Expectations (total N = 9500), this article shows that the majority of German households underestimate the ECB's inflation forecasting accuracy....
Persistent link: https://www.econbiz.de/10014495652
; savings glut ; monetary policy ; policy coordination …
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