Showing 1 - 10 of 21
This paper investigates exceptional phases of stock market cycles. Defined in Pagan and Sossounov (2003) as unusual, they are detected as outliers in the historical distribution. Moreover, this study completes the growing literature on stock market bulls and bears in several aspects. First,it...
Persistent link: https://www.econbiz.de/10005510315
Studies on central bank reaction functions find that central banks only caring about inflation stability, like the ECB, seem to follow a standard Taylor rule in the sense that the interest rate reacts significantly to variations in the output gap. We explain this result by claiming that the...
Persistent link: https://www.econbiz.de/10008557032
In this paper I analyze optimal monetary and fiscal policy in a monetary union from a union-wide perspective. For this purpose I lay out a New Keynesian business cycle model of a currency union with rigid real wages. The fiscal policy is implemented at the country level through the choice of...
Persistent link: https://www.econbiz.de/10005079017
This essay tries to put Simmel’s Theory of Money into the context of current discussions in economics concerning money. The essay has three parts. Part I looks at the contribution of Georg Simmel in its context, and offers remarks about the changing structure of economics as a discipline...
Persistent link: https://www.econbiz.de/10005795848
This paper introduces a zero lower bound constraint on the nominal interest rate in a financial accelerator model with nominal and real rigidities. We .rst analyze the implicationsfor aggregate dynamics of binding the zero lower bound for shocks that depress the nominalinterest rate. We include...
Persistent link: https://www.econbiz.de/10008516190
This paper compares two approaches that aim to explain the lagged and persistent behaviorof inflation and output after a variation in the interest rate. Two variants that produce inertiaare added to a baseline DSGE model of sticky prices: 1) a lagged inflation indexation rulealong with habit...
Persistent link: https://www.econbiz.de/10008516192
Cochrane (2007) points out that the Taylor rule parameters in New-Keynesian models are not identified, and thus trying to estimate them through single-equation regressions is pointless. This paper shows in contrast that this observation holds only for economies that do not display inflation...
Persistent link: https://www.econbiz.de/10005219975
This study aims at unifying the empirical research on the financial part of the monetary transmission process in the Eurozone between 1993 and 2002. After endogenously determining structural breaks, we select an optimal pass-through model for a series of national retail interest rates for each...
Persistent link: https://www.econbiz.de/10005304792
This study investigates the transmission of monetary policy onto retail bank interest rates inthe eight Central and Eastern European countries (CEECs) that joined the European Union in2004. Focussing on the period from 1993 to 2003, we employ a unifying empirical passthrough model that allows...
Persistent link: https://www.econbiz.de/10005304814
This study investigates the current state of euro zone banking market integration by applying convergence and cointegration measures to mortgage and short-term corporate loan markets. These two measures of integration often lead to contradicting conclusions and are therefore comparatively...
Persistent link: https://www.econbiz.de/10005304865