Showing 1 - 10 of 19,572
Persistent link: https://www.econbiz.de/10010489870
Persistent link: https://www.econbiz.de/10012693963
Persistent link: https://www.econbiz.de/10012437728
Recent experience with interest rates hitting the effective lower bound and agents facing binding borrowing constraints has emphasised the importance of understanding the behaviour of an economy in which some variables may be restricted at times. The extended path algorithm is a commonly used...
Persistent link: https://www.econbiz.de/10013365558
This article presents an algorithm that extends Ljungqvist and Sargent's (2012) dynamic Stackelberg game to the case of dynamic stochastic general equilibrium models including forcing variables. Its first step is the solution of the discounted augmented linear quadratic regulator as in Hansen...
Persistent link: https://www.econbiz.de/10012901171
In this paper, I examine the welfare consequences of conventional approximation methods in business cycle analysis: the log-linear approximation of model dynamics and the second-order approximation of social welfare. In a canonical New Keynesian model, the approximation around the deterministic...
Persistent link: https://www.econbiz.de/10012828152
Persistent link: https://www.econbiz.de/10001435317
Persistent link: https://www.econbiz.de/10001362623
This paper develops a piecewise linear toolkit for optimal policy analysis of linear rational expectations models, subject to occasionally binding constraints on (multiple) policy instruments and other variables. Optimal policy minimises a quadratic loss function under either commitment or...
Persistent link: https://www.econbiz.de/10013243484
I study optimal monetary policy in a simple New Keynesian model with portfolio adjustment costs. Purchases of long-term debt by the central bank (quantitative easing; ‘QE') alter the average portfolio return and hence influence aggregate demand and inflation. The central bank chooses the...
Persistent link: https://www.econbiz.de/10012946995