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Menu Costs, Uncertainty Cycles, and the Propagation of Nominal Shocks

Baley, Isaac - 2020

Nominal shocks have long lasting effects on real economic activity, beyond those implied by the average frequency of price adjustment in micro data. This paper develops a price-setting model that explains this gap through the interplay of menu costs and uncertainty about productivity....

Persistent link: https://www.econbiz.de/10012857180

Are uncertainty shocks aggregate demand shocks?

Fasani, Stefano; Rossi, Lorenza - In: Economics letters 167 (2018), pp. 142-146

Persistent link: https://www.econbiz.de/10012016524

Monetary policy uncertainty and firm dynamics

Fasani, Stefano; Mumtaz, Haroon; Rossi, Lorenza - 2020

This paper uses a FAVAR model with external instruments to show that the policy uncertainty shocks are recessionary and are associated with an increase in the exit of firms and a decrease in entry and in the stock price with total factor productivity rising in the medium run. To explain this...

Persistent link: https://www.econbiz.de/10012243253

Endogenous Uncertainty in a General Equilibrium Model with Price Contingent Contracts

Kurz, Mordecai; Wu, Ho-Mou - 2015

This paper views uncertainty and economic fluctuations as being primarily endogenous and internally propagated phenomena. The most important Endogenous Uncertainty examined in this paper is price uncertainty which arises when agents do not have structural knowledge and are compelled to make...

Persistent link: https://www.econbiz.de/10014063866

Endogenous Uncertainty in a General Equilibrium Model with Price Contingent Contracts

Kurz, Mordecai; Wu, Ho-Mou - 1998

Persistent link: https://www.econbiz.de/10014093465

Measuring market expectations

Baumeister, Christiane - 2021

evidence for monetary policy and inflation expectations with a special emphasis on market-specific characteristics that …

Persistent link: https://www.econbiz.de/10012622575

The Equity Premium, Long-Run Risk, & Optimal Monetary Policy

Diercks, Anthony M. - 2015

properly accounts for asset pricing facts. I find that the Ramsey optimal monetary policy yields an inflation rate above 3 ….5% and inflation volatility close to 1.5%. The same model calibrated to a counterfactually low equity premium implies an … optimal inflation rate close to zero and inflation volatility less than 10 basis points, consistent with much of the existing …

Persistent link: https://www.econbiz.de/10013014250

Uncertainty and Sentiment-Driven Equilibria

Benhabib, Jess - 2013

We construct a model to capture the Keynesian idea that production and employment decisions are based on expectations of aggregate demand driven by sentiments and that realized demand follows from the production and employment decisions of firms. We cast the Keynesian idea into a simple model...

Persistent link: https://www.econbiz.de/10013085407

Optimal feasible expectations in economics and finance

Lake, Alfred - 2020

Persistent link: https://www.econbiz.de/10013206359

One who hesitates is lost : monetary policy under model uncertainty and model misspecification

Ajevskis, Viktors - 2024

Persistent link: https://www.econbiz.de/10015158303