Similar Search Results

Montamat, Giselle; Roch, Francisco - 2021

We consider how fear of model misspecification on the part of the planner and/or the households affects welfare gains from optimal macroprudential taxes in an economy with occasionally binding collateral constraints as in Bianchi (2011). On the one hand, there exist welfare gains from...

Persistent link: https://www.econbiz.de/10013226440

Forward Guidance, Information Frictions and Optimal Monetary Policy : A General Equilibrium Analysis with a Public Sector

Sun, Rui; Zhao, Yikai - 2021

This paper analyzes the optimal monetary policy in a model with a public sector when firms choose prices under incomplete information, and the government can not observe the current state perfectly. We accommodate the notion of Odyssean forward guidance in a framework with a public sector. The...

Persistent link: https://www.econbiz.de/10013226866

Hemlock for policy response : monetary policy, exchange rates and labour unions in SEE and CIS during the crisis

Jovanovic, Branimir; Petreski, Marjan - 2012

Persistent link: https://www.econbiz.de/10009559082

Hemlock for policy response : monetary policy, exchange rates and labour unions in SEE and CIS during the crisis

Jovanovic, Branimir; Petreski, Marjan - 2012

on the output gap, but on the wage gap, which stresses the relevance of the labour unions for the inflation dynamics in … responded counter-cyclically during the crisis in countries with weak trade unions, differently from countries with strong … unions: in crisis times, weak economy drags wages down in low-unionized countries and monetary policy relaxes in these …

Persistent link: https://www.econbiz.de/10011374356

An Analytical Approach to the Welfare Cost of Business Cycles and the Benefit from Activist Monetary Policy

Kiley, Michael T. - 2002

Typical dynamic general-equilibrium (DGE) models with stochastic productivity, consumers with state-separable (expected utility) preferences, and capital accumulation imply a small welfare cost of business cycles and a small market price of risk (i.e., equity premium). I present an analytical...

Persistent link: https://www.econbiz.de/10014122520

Monetary Policy and the Cyclicality of Risk

Gust, Christopher J. - 2010

We use a DSGE model that generates endogenous movements in risk premia to examine the positive and normative implications of alternative monetary policy rules. As emphasized by the micro-finance literature, variation in risk arises because households face fixed costs of transferring cash across...

Persistent link: https://www.econbiz.de/10013140045

Welfare effects of business cycles and monetary policies in a small open emerging economy

Mohimont, Jolan - 2019

This paper evaluates the welfare cost of business cycles and the effects of monetary policies in a DSGE model tailored to a small open emerging economy. The model generates rich business cycle fluctuations, features labor market idiosyncratic risks and accounts for imperfect financial and...

Persistent link: https://www.econbiz.de/10012124514

Monetary Policy, Taxes, and the Business Cycle

Gavin, William T.; Kydland, Finn E.; Pakko, Michael Robert - 2022

In this paper, we model the interaction of inflation with the tax on nominal capital gains, examining the contribution of this interaction to aggregate fluctuations. Our innovation is to combine monetary policy shocks with non-indexed taxes in a model in which the central bank implements policy...

Persistent link: https://www.econbiz.de/10013291669

Monopolistic Unions, Brainard Uncertainty, and Optimal Monetary Policy

Henckel, Timo - 2010

Some authors have argued that multiplicative uncertainty may benefit society as the cautionary motive reduces the inflation bias. However, when there are non-atomistic wage setters, higher multiplicative uncertainty may raise the wage premium and unemployment and thus reduce welfare....

Persistent link: https://www.econbiz.de/10013146246

Information Content of Wages and Monetary Policy

Hahn, Volker; Gersbach, Hans - 2004

interplay of wage-setting unions and a central bank we show that although central banks may not gain more information by …

Persistent link: https://www.econbiz.de/10014068047