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Persistent link: https://www.econbiz.de/10012803289
In light of the rising political and economic uncertainty in Europe, we aim to provide a basic understanding of the impact of economic policy uncertainty and financial market uncertainty on a set of macroeconomic variables such as production, consumption and investment. In this paper, we apply a...
Persistent link: https://www.econbiz.de/10011761787
the scenarios of both certainty and uncertainty. We capture the direct interest rate-hysteresis on the investments and the … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis … hysteresis effects on a macroeconomic level. Based on our simple model we are able to obtain some conclusions about the efficacy …
Persistent link: https://www.econbiz.de/10012099522
the scenarios of both certainty and uncertainty. We capture the direct interest rate-hysteresis on the investments and the … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis … hysteresis effects on a macroeconomic level. Based on our simple model we are able to obtain some conclusions about the efficacy …
Persistent link: https://www.econbiz.de/10012031139
the scenarios of both certainty and uncertainty. We capture the direct interest rate-hysteresis on the investments and the … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis … hysteresis effects on a macroeconomic level. Based on our simple model we are able to obtain some conclusions about the efficacy …
Persistent link: https://www.econbiz.de/10012151228
direct interest rate-hysteresis effects on investment and the capital stock and, explicitly, stochastic changes of the … interest rate-investment hysteresis relationship. Starting with hysteresis effects on a microeconomic level of a single firm …, we apply an explicit aggregation procedure to derive the interest rate-hysteresis effects on a macroeconomic level. Based …
Persistent link: https://www.econbiz.de/10011994756
This paper offers several contributions to actual research and discussion on monetary policy. It clarifies the relationship between uncertainty of inflation persistence and optimal monetary policy and discusses the consequences of the recent Blanchard proposal to implement a higher inflation...
Persistent link: https://www.econbiz.de/10003965025
realwirtschaftlichen Variablen in Europa hat. Die Implikationen politischer Unsicherheit für Europa und die Eurozone im Speziellen fallen …
Persistent link: https://www.econbiz.de/10011662699
After hitting the lower bound on interest rates, the Eurosystem engaged in a public sector purchase programme (PSPP) and forward guidance (FG). We use prior and posterior predictive analysis to evaluate the importance of parameter uncertainty in an analysis of these policies. We model FG as an...
Persistent link: https://www.econbiz.de/10011846905
The complexity resulting from intertwined uncertainties regarding model misspecification and mismeasurement of the state of the economy defines the monetary policy landscape. Using the euro area as laboratory this paper explores the design of robust policy guides aiming to maintain stability in...
Persistent link: https://www.econbiz.de/10010392194