Similar Search Results

The Role of Uncertain Government Preferences for Fiscal and Monetary Policy Interaction

Kuznetsova, Olga - 2017

This paper explores the role of uncertain government preferences for fiscal and monetary policy interaction. Our analysis shows that the uncertainty about government preferences does not affect the macroeconomic equilibrium if the fiscal multiplier is known. In the case of multiplicative...

Persistent link: https://www.econbiz.de/10012970807

A new comparative approach to macroeconomic modeling and policy analysis

Wieland, Volker; Cwik, Tobias; Müller, Gernot J.; … - 2012

In the aftermath of the global financial crisis, the state of macroeconomicmodeling and the use of macroeconomic models in policy analysis has come under heavy criticism. Macroeconomists in academia and policy institutions have been blamed for relying too much on a particular class of...

Persistent link: https://www.econbiz.de/10010391307

Uncertainty and fiscal policy in an asymmetric monetary union

Hefeker, Carsten; Zimmer, Blandine - 2009

We examine monetary and fiscal interactions in a monetary union model with uncertainty due to imperfect central bank transparency. It is first shown that monetary uncertainty discourages excessive taxation and may thus reduce average inflation and output distortions. However, as countries enter...

Persistent link: https://www.econbiz.de/10003852211

Uncertainty and Fiscal Policy in an Asymmetric Monetary Union

Hefeker, Carsten - 2013

The paper examines the monetary-fiscal interactions in a monetary union model with uncertainty due to imperfect central bank transparency. We first show that monetary uncertainty disciplines fiscal policymakers and thereby reduces taxes, average inflation and output distortions. However, as more...

Persistent link: https://www.econbiz.de/10012753473

Uncertainty Shocks and Monetary Policy Rules in a Small Open Economy

Gupta, Sargam - 2020

Post great financial crisis (GFC) of 2008-2009, there has been a surge in the macroeconomics literature on aggregate uncertainty. Although the recent literature has recognized adverse real effects of global uncertainty shocks in EMEs, the role of monetary policy in mitigating these effects is...

Persistent link: https://www.econbiz.de/10012827002

Monetary Policy with Model Uncertainty : Distribution Forecast Targeting

Svensson, Lars E. O. - 2016

Persistent link: https://www.econbiz.de/10012991220

The optimal supply of central bank reserves under uncertainty

Afonso, Gara; La Spada, Gabriele; Mertens, Thomas; … - 2023 - Revised December 2023

This paper provides an analytically tractable theoretical framework to study the optimal supply of central bank reserves when the demand for reserves is uncertain and nonlinear. We fully characterize the optimal supply of central bank reserves and associated market equilibrium. We find that the...

Persistent link: https://www.econbiz.de/10014426250

Incentive Schemes for Central Bankers Under Uncertainty : Inflation Targets Versus Contracts

Schaling, Eric; Hoeberichts, Marco; Eijffinger, … - 2011

The implications of uncertain policy preferences for the targeting and contracting approaches to monetary policy are investigated. It is shown that, in the presence of uncertain preferences, a linear incentive contract in the sense of Walsh performs better than an explicit inflation target as...

Persistent link: https://www.econbiz.de/10014206428

International Monetary Policy Coordination and Financial Market Integration

Sutherland, Alan - 2021

The welfare gains from international coordination of monetary policy are analysed in a two-country model with sticky … prices. The gains from coordination are compared under two alternative structures for financial markets: financial autarky … and risk sharing. The welfare gains from coordination are found to be largest when there is risk sharing and the …

Persistent link: https://www.econbiz.de/10013320210

Complexity and monetary policy

Orphanides, Athanasios; Wieland, Volker - 2012

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

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