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This paper studies the transmission of monetary policy to the stock market through investors' discount factors. To isolate this channel, we investigate the effect of US monetary policy surprises on the ratio of prices of the same stock listed simultaneously in Hong Kong and Mainland China, and...
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Based on findings in the behavioral economics literature, we incorporate non-unitary discounting into a monetary search … model to study optimal monetary policy. We apply non-unitary discounting, that is, discount rates that are different across …
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interest rates becomes less effective in stimulating current economic activity. While the implication of such discounting for … optimal policy depends on its degree, we find that, under a wide range of plausible degrees of discounting, it is optimal for …
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