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Endogenous Growth, Monetary Shocks and Nominal Rigidities

Annicchiarico, Barbara; Pelloni, Alessandra; Rossi, Lorenza - 2010

: (i) monetary volatility negatively affects long-run growth; (ii) the relation between nominal volatility and growth … increases the negative effect of nominal volatility on mean growth. …

Persistent link: https://www.econbiz.de/10010343890

The Mistake of 1937 : A General Equilibrium Analysis

Eggertsson, Gauti B. - 2017

This paper studies a dynamic general equilibrium model with sticky prices and rational expectations in an environment of low interest rates and deflationary pressures. We show that small changes in the public's beliefs about the future inflation target of the government can lead to large swings...

Persistent link: https://www.econbiz.de/10012746836

Policy Risk and the Business Cycle

Born, Benjamin - 2013

The argument that policy risk, i.e., uncertainty about monetary and fiscal policy, has been holding back the economic recovery in the U.S. during the Great Recession has a large popular appeal. We analyze the role of policy risk in explaining business cycle fluctuations by using an estimated New...

Persistent link: https://www.econbiz.de/10013078531

Policy risk and the business cycle

Born, Benjamin; Peifer, Johannes - 2011 - This version: June 1, 2011

The argument that policy risk, i.e. uncertainty about monetary and fiscal policy, has been holding back the economic recovery in the U.S. during the Great Recession has a large popular appeal. We analyze the role of policy risk in explaining business cycle fluctuations by using an estimated New...

Persistent link: https://www.econbiz.de/10009126071

Policy risk and the business cycle

Born, Benjamin; Pfeifer, Johannes - 2013 - This version: July 11, 2013, First Version: December 2010

Persistent link: https://www.econbiz.de/10009772961

Business cycles when consumers learn by shopping

Gutiérrez-Daza, Ángelo - 2024

function of the monetary policy stance. As a result, a more hawkish monetary policy reduces the volatility and persistence of …

Persistent link: https://www.econbiz.de/10015069687

Learning as a Rational Foundation for Macroeconomics and Finance

Evans, George W.; Honkapohja, Seppo - 2011

Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models in real time. This approach provides a stability test for...

Persistent link: https://www.econbiz.de/10014183715

Fiscal foundations of inflation : imperfect knowledge

Eusepi, Stefano; Preston, Bruce - 2013

This paper proposes a theory of the fiscal foundations of inflation based on imperfect knowledge and learning. The … theory is similar in spirit to, but distinct from, unpleasant monetarist arithmetic and the fiscal theory of the price level …

Persistent link: https://www.econbiz.de/10010202656

Financial frictions : micro vs macro volatility

Lee, Seungcheol; Luetticke, Ralph; Ravn, Morten O. - 2021

We introduce frictional ﬁnancial intermediation into a HANK model. Households are subject to idiosyncratic and aggregate risk and smooth consumption through savings and consumer loans intermediated by banks. The banking friction introduces an endogenous countercyclical spread between the...

Persistent link: https://www.econbiz.de/10012705511

Volatility effects of news shocks in (B)RE models with optimal monetary policy

Offick, Sven; Wohltmann, Hans-Werner - 2015

This paper studies the volatility implications of anticipated cost-push shocks (i.e. news shocks) in a New Keynesian …), anticipated cost-push shocks lead to a higher (lower) volatility in the output gap and in the central bank’s loss than an … unanticipated shock of the same size. The inversion of the volatility effects of news shocks between rational and boundedly rational …

Persistent link: https://www.econbiz.de/10011390502