Showing 1 - 10 of 209
The Taylor rule is a widely used concept in monetary macroeconomics and has been used in various areas either for positive or normative analyses. We examine whether the robustifying nature of Taylor rule cross-checking in the spirit of R island and Sveen (2011) also carries over to the case of...
Persistent link: https://www.econbiz.de/10010310141
This paper investigates whether financial market experts correctly perceive the reaction function of the European Central Bank (ECB) with respect to macroeconomic variables. Using survey expectations of financial market experts, we explain the individual interest rate forecast errors within the...
Persistent link: https://www.econbiz.de/10010270167
This paper uses a simple model based on the board game Monopoly to analyze the drivers of house prices and wealth inequality. Simulations show that inequality generally builds up fast even if players have equal starting conditions and house prices are stable; rising house prices imply more...
Persistent link: https://www.econbiz.de/10012099109
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The recent financial crisis has deeply affected money markets. We analyze the effectiveness of monetary policy in the euro area with respect to (i) how much monetary policy expectations are reflected in money market rates, (ii) how much money market rates were disturbed by liquidity and credit...
Persistent link: https://www.econbiz.de/10010270087
This paper evaluates the performance of optimal simple policy rules in the presence of news shocks. It is shown that the inclusion of forward-looking elements enhances the performance of simple optimized interest rate rules when agents learn about future disturbances in advance. We provide a...
Persistent link: https://www.econbiz.de/10010270182
This paper revisits the trade-off between central bank independence and conservatism using a New Keynesian model with uncertainty about the central banker's output gap target. It is shown that when this uncertainty is high, the trade-off no longer holds. In this case, the optimal combination...
Persistent link: https://www.econbiz.de/10010270210
In this paper we quantitatively evaluate the hypothesis that the Great Moderation is partly the result of a less activist monetary policy. We simulate a New Keynesian model where the central bank can only observe a noisy estimate of the output gap and find that the less pronounced reaction of...
Persistent link: https://www.econbiz.de/10010270239