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Heterogeneous expectations, indeterminacy, and postwar US business cycles
Ilabaca, Francisco; Milani, Fabio - 2020
postwar US macroeconomic data can be explained as the outcome of passive monetary policy, indeterminacy, and sunspot … windows and allowing the parameters to fall both in the determinacy and indeterminacy regions. The estimates reveal large … the sample. The results confirm that macroeconomic data in the early windows are better explained by indeterminacy, while …
Persistent link: https://www.econbiz.de/10012200338
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Heterogeneous expectations, indeterminacy, and postwar US business cycles
Ilabaca, Francisco; Milani, Fabio - In: Journal of macroeconomics 68 (2021), pp. 1-16
Persistent link: https://www.econbiz.de/10012630988
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Bounded rationality, monetary policy, and macroeconomic stability
Ilabaca, Francisco; Meggiorini, Greta; Milani, Fabio - 2019
both determinacy and indeterminacy. The empirical results show that determinacy is preferred both before and after 1979 … rationality that we estimate prevent the economy from falling into indeterminacy. …
Persistent link: https://www.econbiz.de/10012029136
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An interest rate rule to uniquely implement the optimal equilibrium in a liquidity trap
Duarte, Fernando; Zabai, Anna - 2015
We propose a new interest rate rule that implements the optimal equilibrium and eliminates all indeterminacy in a …
Persistent link: https://www.econbiz.de/10011460647
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How to escape a liquidity trap with interest rate rules
Duarte, Fernando - 2016
I give necessary and sufficient conditions under which interest-rate feedback rules eliminate aggregate instability by inducing a globally unique optimal equilibrium in a canonical New Keynesian economy with a binding zero lower bound. I consider a central bank that initially keeps interest...
Persistent link: https://www.econbiz.de/10011538006
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How to escape a liquidity trap with interest rate rules
Duarte, Fernando - 2016
I give necessary and sufficient conditions under which interest-rate feedback rules eliminate aggregate instability by inducing a globally unique optimal equilibrium in a canonical New Keynesian economy with a binding zero lower bound. I consider a central bank that initially keeps interest...
Persistent link: https://www.econbiz.de/10011477354
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An interest rate rule to uniquely implement the optimal equilibrium in a liquidity trap
Duarte, Fernando; Zabai, Anna - 2015
We propose a new interest rate rule that implements the optimal equilibrium and eliminates all indeterminacy in a …
Persistent link: https://www.econbiz.de/10011346620
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Interest rate rules under financial dominance
Lewis, Vivien; Roth, Markus - 2018
We study the equilibrium properties of a business cycle model with financial frictions and price adjustment costs. Capital-constrained entrepreneurs finance risky projects by borrowing from banks. Banks, in turn, make loans using equity and deposits. Because financial contracts are not...
Persistent link: https://www.econbiz.de/10011897971
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Household heterogeneity, nonseparable preferences, and the Taylor principle
Jansen, Babette; Winkler, Roland - 2024
We consider a two-agent New Keynesian model with savers and hand-to-mouth households with quasi-separable utility functions as introduced by Bilbiie (2020a). This framework allows for separate parameterization of consumption-hours complementarity and income effects on labor supply. We examine...
Persistent link: https://www.econbiz.de/10015064065
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Monetary policy and sentiment-driven fluctuations
Chan, Jenny - 2020
Persistent link: https://www.econbiz.de/10012501082