Showing 1 - 9 of 9
This note deals with the stability properties of an economy where the central bank is concerned with stock market developments. We introduce a Taylor rule reacting to stock price growth rates along with inflation and output gap in a New-Keynesian setup. We explore the performance of this rule...
Persistent link: https://www.econbiz.de/10005543471
This paper analyses systematic monetary policy in a dynamic stochastic menu cost model. The main assumptions are that price setters have to pay small adjustment costs in order to equalize actual and optimal prices whereas the central bank can do so costlessly (by adjusting the money supply) but...
Persistent link: https://www.econbiz.de/10005543487
This paper studies the relation between political polarization and delegation of stabilization policy. There is asymmetric information about how the economy works: unlike voters, two political parties know the variance of an employment shock. Prior to an election each party proposes a central...
Persistent link: https://www.econbiz.de/10005749578
This paper presents a cointegrated VAR analysis of monetary transmission mechanisms and changes in them after Spain joined the EMS in 1989. Analyses of long-run price homogeneity within the I(2) model turned out to be crucial for understanding the joint behaviour of money, income, prices, and...
Persistent link: https://www.econbiz.de/10005749597
The focus is on nominal transmission mechanisms in Italy with special reference to monetary effects and how they have changed with the increased economic integration in Europe and the increased independence of Italian Central Bank. The empirical model investigates the dynamic determination of...
Persistent link: https://www.econbiz.de/10005749652
Money provides liquidity services through a cash-in-advance constraint. The exchange of commodities and assets extends over an infinite horizon under uncertainty and a sequentially complete asset market. Monetary policy sets the path of rates of interest and accommodates the demand for balances....
Persistent link: https://www.econbiz.de/10005749674
In this paper a cointegrated system represented as a simultaneous Vector Equilibrium Correction Model for money, prices, output and interest rates in Germany is estimated. The model gives insight in the process of transmission mechanisms of the Bundesbank's monetary policy. The empirical results...
Persistent link: https://www.econbiz.de/10005749712
This paper presents a comparative analysis of monetary transmission mechanisms and changes in them after the "second ERM" in March 1983. The empirical model investigates the determination of money, income, prices and interest rates in Germany, Denmark, and Italy based on the cointegrated VAR...
Persistent link: https://www.econbiz.de/10005749822
Relationships between the Federal funds rate, unemployment, inflation, and the long-term government-bond rate are investigated with cointegration techniques. We find a stable long-term relationship between the Federal funds rate, unemployment, and the bond rate. This relationship is...
Persistent link: https://www.econbiz.de/10005750013