Narrow search
Showing 1 - 10 of 1,005
Cover Image
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
Cover Image
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
Cover Image
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
Cover Image
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
Cover Image
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
Cover Image
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
Cover Image
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
Cover Image
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
Cover Image
Monetary policy and sentiment-driven fluctuations
Chan, Jenny - 2020
Persistent link: https://www.econbiz.de/10012501082
Cover Image
Social Learning and Monetary Policy at the Effective Lower Bound
Arifovic, Jasmina; Grimaud, Alex; Salle, Isabelle; … - 2021
This paper develops a model that jointly accounts for the missing disinflation in the wake of the Great Recession and the subsequently observed inflation-less recovery. The key mechanism works through heterogeneous expectations that may durably lose their anchorage to the central bank (CB)'s...
Persistent link: https://www.econbiz.de/10013250844