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Optimal conservatism and collective monetary policymaking under uncertainty

Hefeker, Carsten; Zimmer, Blandine - 2014

We study how the optimal degree of conservatism relates to decision-making procedures in a Monetary Policy Committee (MPC). In our framework, central bank conservatism is required to attenuate the volatility of monetary decisions generated by the presence of uncertainty about the committee...

Persistent link: https://www.econbiz.de/10010391838

Regulation of Telecom : What Works & Why? Lessons of Independent Central Banks

Stern, Jon; Trillas, Francesc - 2013

Oftel has now been the regulatory agency for UK telecommunications for over 15 years. The FCC has regulated US telecoms … million with a growth in mobile subscribers from zero to 24 million. Over the same period, telecommunications revenue as a … framework, particularly for investment. In the telecommunications case, it is the establishment of effective institutions to …

Persistent link: https://www.econbiz.de/10014113351

Product Market Competition and the Industry Price-Cost Markup Fluctuations : Role of Energy Price and Monetary Changes

Ghosal, Vivek - 2000

Quantifying differences in markup fluctuations between relatively competitive and non-competitive industries has received increasing attention in industrial organization and macroeconomics. We examine markup fluctuations in response to energy price and monetary changes, and the role played by...

Persistent link: https://www.econbiz.de/10014151336

The Price of Stability : Volatility and the Rise in Markups during the Great Moderation

Colla Rizzi, Giovanni; Lucke, Friedrich; Morzenti, Giovanni - 2023

During the Great Moderation, macroeconomic volatility declined while firm markups increased. We document a causal relationship between volatility and markups due to tacit collusion. We exploit the legalisation of interstate banking as an exogenous decrease in volatility. Using an instrumental...

Persistent link: https://www.econbiz.de/10014254341

Monetary policy, firm exit and productivity

Hartwig, Benny; Lieberknecht, Philipp - 2020

We analyze the influence of monetary policy on firms’ extensive margin and productivity. Our empirical evidence for the U.S. based on a macro-financial SVAR suggests that expansionary monetary policy shocks stimulate corporate profits, reduce firm exit and increase firm entry. In the medium...

Persistent link: https://www.econbiz.de/10012322407

Firm heterogeneity, capital misallocation and optimal monetary policy

González, Beatriz; Nuño, Galo; Thaler, Dominik; … - 2021

We analyze monetary policy in a New Keynesian model with heterogeneous firms and financial frictions. Firms differ in their productivity and net worth and face collateral constraints that cause capital misallocation. TFP endogenously depends on the time-varying distribution of firms. Although a...

Persistent link: https://www.econbiz.de/10012697125

Discreteness and Nominal Rigidity : Do Supermarket Prices Move Too Much?

Eden, Benjamin - 2010

We assess the ability of the cross sectional price distribution to react to shocks from the point of view of a Prescott “hotels” type model, using a sample of 435 products in 75 stores over 121 weeks. We argue that the cross sectional distribution is flexible in spite of the price repetition...

Persistent link: https://www.econbiz.de/10013135334

Long-term Business Relationships, Bargaining and Monetary Policy

Abbritti, Mirko; Aguilera-Bravo, Asier; Trani, Tommaso - 2021

We analyze a monetary economy where firms trading intermediate inputs engage in long-term business-to-business (B2B) relationships. We focus on features such as search for business partners, price negotiation and productivity levels that can make it convenient to separate a relationship. These...

Persistent link: https://www.econbiz.de/10013231327

Market Power and Monetary Policy Transmission

Duval, Romain; Furceri, Davide; Lee, Raphael; Mendes … - 2022

We show that firms’ market power dampens the response of their output to monetary policy shocks, using firm-level data for the United States and a large cross-country firm-level dataset for 14 advanced economies. The estimated impact of a firm’s markup on its response to a monetary policy...

Persistent link: https://www.econbiz.de/10013306777

Firm Heterogeneity, Capital Misallocation and Optimal Monetary Policy

González, Beatriz; Nuño, Galo; Thaler, Dominik; … - 2022

Persistent link: https://www.econbiz.de/10013307972