We extend the basic (representative-household) New Keynesian [NK] model of the monetary transmission mechanism to allow for a spread between the interest rate available to savers and borrowers, that can vary for either exogenous or endogenous reasons. We find that the mere existence of a...

Central banks, which used to be so secretive, are communicating more and more these days about their monetary policy. This development has proceeded hand in glove with a burgeoning new scholarly literature on the subject. The empirical evidence, reviewed selectively here, suggests that...

This paper analyzes how bond option prices are affected by different types of monetary policy. Analytical results from a general equilibrium model with sticky wages show that employment or output targeting typically give lower bond option prices than inflation targeting

The article illustrates how the integration of modern theory of finance and stochastic dynamic macroeconomic analysis provides a deeper understanding of the link between asset prices and consumption. It shows that this approach gives only a partial explanation for recent trends in US...

Deflation is currently considered as one of the most important threats for macroeconomic dynamics and, thus, it is argued that it should be avoided by all available means. We challenge this view because empirically it cannot be verified that deflation periods necessarily go hand in hand with...

Ausstieg aus dem Niedrigzinsumfeld? In vielen Ländern der Eurozone haben Regierungen, Unternehmen und private Haushalte den Prozess der Bereinigung ihrer Bilanzen noch nicht erfolgreich abgeschlossen. Die Schuldenstände sind nach wie vor hoch und drohen bei negativen Entwicklungen, wie dem...

Recently, several studies have argued about the interactions of the real economy and financial system, as well as the importance of financial cycles in business cycle fluctuations. To date, there exists near consensus among central bankers, economists, and other scholars that the financial cycle...

Im Prozess der Digitalisierung wird zunehmend die Nachfrage nach Bargeld verdrängt und der Zahlungsverkehr privatisiert. Spiegelbild dieser Entwicklung ist ein Machtverlust der Zentralbanken, ihr Instrumentenset droht an Effizienz zu verlieren. Eine in jüngerer Zeit viel diskutierte Reaktion...

Die Fußballspieler des FC Bayern München werben für die Kryptobörse Bitpanda, Crypto.com warb mit dem Rapper Eminem während der NBA-Playoffs der Los Angeles Lakers, deren Spielstätte im Jahr 2021 in "Crypto.com Arena" umbenannt wurde. Die Krypto-Community professionalisiert sich zunehmend....