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Monetary DSGE models are widely used because they fit the data well and can be used to address important monetary policy questions. We provide a selective review of these developments. Policy analysis with DSGE models requires using data to assign numerical values to model parameters. The paper...
Persistent link: https://www.econbiz.de/10013069243
This paper estimates a standard Dynamic Stochastic General Equilibrium (DSGE) model that includes a wage and price Phillips curves with different expectation formation processes for Brazil and the USA. Other than the standard rational expectation process, we also use a limited rationality...
Persistent link: https://www.econbiz.de/10015055065
the supply of credit to the private sector stretched the limits of conventional monetary policy. In 2015, the risk of …
Persistent link: https://www.econbiz.de/10012865150
Persistent link: https://www.econbiz.de/10013462000
accelerator model, time varying risk shocks, and a zero lower bound on the nominal interest rate. The amplification mechanism … results from a portfolio re-balancing from households, who reduce capital investment in favor of risk-free bonds. Consequently …
Persistent link: https://www.econbiz.de/10012231163
We analyze the distributional effects of monetary policy on income, wealth and consumption. We use administrative … terms of income, wealth and consumption are monotonically increasing in the ex-ante income level. The distributional effects ….g. leverage and risky assets). Our estimates imply that softer monetary policy increases income inequality. …
Persistent link: https://www.econbiz.de/10013347177
Persistent link: https://www.econbiz.de/10011494156
frictions render labor-market risk countercyclical and endogenous to monetary policy. Our main result is that a majority of …
Persistent link: https://www.econbiz.de/10011563007
Persistent link: https://www.econbiz.de/10011658512
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 …
Persistent link: https://www.econbiz.de/10012852798