Narrow search
Showing 1 - 10 of 7,263
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
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
Behavioral New Keynesian models : learning vs. cognitive discounting
Meggiorini, Greta; Milani, Fabio - 2021
This paper estimates a New Keynesian model with new and old behavioral elements. Agents in the model exhibit cognitive discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model. We investigate the model under different...
Persistent link: https://www.econbiz.de/10012509319
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/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
Time-varying dynamics of the German business cycle : a comprehensive investigation
Reif, Magnus - 2021
This paper provides insights into the time-varying dynamics of the German business cycle over the last five decades. To do so, I employ an open-economy time-varying parameter VAR with stochastic volatility, which I estimate by quasi-Bayesian techniques. The reduced-form analysis reveals...
Persistent link: https://www.econbiz.de/10012607593
Cover Image
Monetary policy and sentiment-driven fluctuations
Chan, Jenny - 2020
Persistent link: https://www.econbiz.de/10012501082
Cover Image
Diverse policy committees can reach underrepresented groups
D'Acunto, Francesco; Fuster, Andreas; Weber, Michael - 2021 - This version: August 2021
Increasing the diversity of policy committees has taken center stage worldwide, but whether and why diverse committees are more effective is still unclear. In a randomized control trial that varies the salience of female and minority representation on the Federal Reserve's monetary policy...
Persistent link: https://www.econbiz.de/10012668761
Cover Image
Price level targeting with imperfect rationality: a heuristic approach
Molnar, Vojtech - 2021
The paper compares price level targeting and inflation targeting regimes in a New Keynesian model with bounded rationality. Economic agents form their expectations using heuristics - they choose between a few simple rules based on their past forecasting performance. Two main specifications of...
Persistent link: https://www.econbiz.de/10012490227