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The bank, the bank-run, and the central bank : the impact of early deposit withdrawals in a new Keynesian framework

Totzek, Alexander (contributor) - 2008

Currently, private trust in commercial banks declines as a consequence of today’s financial crisis. As past crises, e.g. the Asian crisis, show, the loss of confidence in the financial sector typically causes private agents to withdraw their capital from financial institutions. Thus, the...

Persistent link: https://www.econbiz.de/10003794089

On the non-optimality of information : an Analysis of the welfare effects of anticipated shocks in the New Keynesian model

Wohltmann, Hans-Werner (contributor); … - 2008

This paper compares the welfare effects of anticipated and unanticipated cost-push shocks in the canonical New … anticipation of a future cost-push shock leads to a higher welfare loss than an unanticipated shock. A welfare gain from the … anticipation of a future cost shock may only occur if prices are sufficiently flexible. We analytically show that this surprising …

Persistent link: https://www.econbiz.de/10003794092

Labor turnover costs, workers' heterogeneity and optimal monetary policy

Faia, Ester; Lechthaler, Wolfgang; Merkl, Christian - 2009

We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are set according to a right to manage bargaining where the firms' counterpart is given by currently employed workers. Our model captures well the salient features of European labor...

Persistent link: https://www.econbiz.de/10003864487

On the introduction of firing costs

Ahrens, Steffen; Wesselbaum, Dennis - 2009

This paper provides a survey of the recent literature about firing costs and discusses the transmission channels of firing costs in a partial equilibrium context. In addition, we expand our analysis two types of firing costs in a New Keynesian model with purely endogenous separations. We further...

Persistent link: https://www.econbiz.de/10003884839

Banks and early deposit withdrawals in a new Keynesian framework

Totzek, Alexander - 2009

When the current financial crisis has widened to a global economic crisis an urgent call for implementing financial markets and financial institutions in business cycle models emerged. By modelling commercial banks as a third type of economic agent, we are able to implement the feature of early...

Persistent link: https://www.econbiz.de/10003893118

Bank behavior and the cost channel of monetary transmission

Hülsewig, Oliver (contributor); Mayer, Eric (contributor); … - 2006

Persistent link: https://www.econbiz.de/10003377604

Monetary persistence and the labor market : a new perspective

Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis J. - 2010

In this paper we propose a novel way to model the labor market in the context of a New-Keynesian general equilibrium model, incorporating labor market frictions in the form of hiring and firing costs. We show that such a model is able to replicate many important stylized facts of the business...

Persistent link: https://www.econbiz.de/10003937114

Monetary persistence and the labor market : a new perspective

Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis J. - In: Journal of economic dynamics & control 34 (2010) 5, pp. 968-983

Persistent link: https://www.econbiz.de/10003973007

Optimal monetary policy in a hybrid New Keynesian model with a cost channel

Bask, Mikael (contributor) - 2007

Persistent link: https://www.econbiz.de/10003590937

Monetary persistence and the labor market : a new perspective

Lechthaler, Wolfgang (contributor); … - 2008

It is common knowledge that the standard New Keynesian model is not able to generate a persistent response in output to temporary monetary shocks. We show that this shortcoming can be remedied in a simple and intuitively appealing way through the introduction of labor turnover costs (such as...

Persistent link: https://www.econbiz.de/10003665644