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A behavioral New Keynesian model of a small open economy under limited foresight

Na, Seunghoon; Xie, Yinxi - 2023 - Last updated: August 17, 2023

This paper investigates exchange rate dynamics in open economies by incorporating bounded rationality. We develop a small open-economy New Keynesian model with an incomplete asset market, wherein decision-makers possess limited foresight and can plan for only a finite distance into the future....

Persistent link: https://www.econbiz.de/10014456583

International transmission of quantitative easing policies : evidence from Canada

Kabaca, Serdar; Tuzcuoglu, Kerem - 2022 - Last updated: June 29, 2022

What are the cross-border spillovers from major economies' quantitative easing (QE) policies to their trading partners? We provide evidence by concentrating on spillovers from the US to Canada during the zero lower bound period when QE policies were actively used. We identify QE shocks in the US...

Persistent link: https://www.econbiz.de/10013264909

The impacts of credit standards on aggregate fluctuations in a small open economy : the role of monetary policy

Le, Hai - In: Economies : open access journal 9 (2021) 4, pp. 1-26

Empirical evidence demonstrates that credit standards, including lending margins and collateral requirements, move in a countercyclical direction. In this study, we construct a small open economy model with financial frictions to generate the countercyclical movement in credit standards. Our...

Persistent link: https://www.econbiz.de/10012800343

Innovation, productivity, and monetary policy

Moran, Patrick; Queralto, Albert - 2017

To what extent can monetary policy impact business innovation and productivity growth? We use a New Keynesian model with endogenous total factor productivity (TFP) to quantify the TFP losses due to the constraints on monetary policy imposed by the zero lower bound (ZLB) and the TFP benefits of...

Persistent link: https://www.econbiz.de/10011780305

Monetary News in the United States and Business Cycles in Emerging Economies

Vicondoa, Alejandro - 2020

points contractionary U.S. interest rate shock induces a fall of 0.5 percent in GDP from its trend two quarters before the … shock materializes. Both anticipated and unanticipated changes in the U.S. interest rate cause significant and …

Persistent link: https://www.econbiz.de/10012832693

Exports and the exchange rate : a general equilibrium perspective

Alexander, Patrick; Reza, Abeer - 2022 - Last updated: April 4, 2022

aim of uncovering a single structural parameter, but theory suggests it could differ depending on the shock that drives … exports relative to the response of the exchange rate, conditional on each shock. Our findings suggest that this relationship … differs greatly from one shock to another, where domestic shocks generate a much weaker relationship than global shocks. We …

Persistent link: https://www.econbiz.de/10013172465

The macroeconomic effects of portfolio equity inflows

Sander, Nicholas - 2023 - Last updated: June 9, 2023

-fixing countries maintain GDP roughly at the same pre-shock levels but achieve this with higher interest rates. …

Persistent link: https://www.econbiz.de/10014288058

Chapter 26. Neoclassical Models in Macroeconomics

Hansen, G.D.; Ohanian, L.E. - In: Handbook of macroeconomics : volume 2, v. 2A-2B SET, (pp. 2043-2130). 2016

This chapter develops a toolkit of neoclassical macroeconomic models, and applies these models to the US economy from 1929 to 2014. We first filter macroeconomic time series into business cycle and long-run components, and show that the long-run component is typically much larger than the...

Persistent link: https://www.econbiz.de/10014024270

The extensive margin of trade and monetary policy

Imura, Yuko; Shukayev, Malik - 2018

This paper studies the effects of monetary policy shocks on firms' participation in exporting. We develop a two-country dynamic stochastic general equilibrium model in which heterogeneous firms make forward-looking decisions on whether to participate in the export market and prices are staggered...

Persistent link: https://www.econbiz.de/10011878727

Firms' Entry, Monetary Policy and the International Business Cycle

Cavallari, Lilia - 2012

This paper provides a theory of the international business cycle grounded on firms' entry and sticky prices. It shows that under simple monetary rules pro-cyclical entry and counter-cyclical markups can generate fluctuations in macroeconomic aggregates and trade variables as large as those...

Persistent link: https://www.econbiz.de/10013099277