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Real and nominal effects of monetary shocks under time-varying disagreement
Esady, Vania - 2019
This paper investigates the heterogeneity of monetary policy transmission under time-varying disagreement regimes using a threshold VAR. Empirically, I establish that during times of high disagreement, prices respond more sluggishly in response to monetary shocks. These stickier prices cause a...
Persistent link: https://www.econbiz.de/10012124866
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Understanding persistent stagnation
Cuba-Borda, Pablo; Singh, Sanjay R. - 2019 - This version: February 2019
We theoretically explore long-run stagnation at the zero lower bound in a representative agent framework. We analytically compare expectations-driven stagnation to a secular stagnation episode and find contrasting policy implications for changes in government spending, supply shocks and...
Persistent link: https://www.econbiz.de/10012004630
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Looking through supply shocks versus controlling inflation expectations : understanding the Central Bank dilemma
Beaudry, Paul; Carter, Thomas J.; Lahiri, Amartya - 2022 - Last updated: September 20, 2022
Central banks in most advanced economies have reacted similarly to the increase in inflation that started in 2021. They initially looked through the rising inflation by leaving monetary policy relatively unchanged. Then, after inflation continued to increase, central banks pivoted by quickly...
Persistent link: https://www.econbiz.de/10013370504
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Do exchange rates absorb demand shocks at the ZLB?
Hoffmann, Mathias; Hürtgen, Patrick - 2021
appreciates in response to an asymmetric negative demand shock at the zero lower bound (ZLB) and exacerbates the adverse … at the ZLB. In sharp contrast to the full information model: (i) A negative demand shock concentrated in the home country … causes a real exchange rate depreciation that partially absorbs the demand shock. (ii) A VAR with an identified demand shock …
Persistent link: https://www.econbiz.de/10012510174
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Disagreement and monetary policy
Falck, Elisabeth; Hoffmann, Mathias; Hürtgen, Patrick - 2017
dispersed information New Keynesian model predicts that a contractionary monetary policy shock leads to a short-run rise in ….S. data shows significantly different responses in inflation and inflation expectations consistent with theory. …
Persistent link: https://www.econbiz.de/10011740252
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The hockey stick Phillips curve and the zero lower bound
Böhl, Gregor; Lieberknecht, Philipp - 2021
The recently observed disconnect between inflation and economic activity can be explained by the interplay between the zero lower bound (ZLB) and the costs of external financing. In normal times, credit spreads and the nominal interest rate balance out; factor costs dominate firms' marginal...
Persistent link: https://www.econbiz.de/10012432969
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How to limit the spillover from the 2021 inflation surge to inflation expectations?
Dräger, Lena; Lamla, Michael; Pfajfar, Damjan - 2022
By providing numerical inflation projections. Many central banks currently face inflation well above their targets and with that the challenge to prevent spillovers on inflation expectations. We study the effect of different communication about the 2021 inflation surge on German consumers'...
Persistent link: https://www.econbiz.de/10012820929
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How to limit the spillover from an inflation surge to inflation expectations
Dräger, Lena; Lamla, Michael; Pfajfar, Damjan - 2022
We study the effects of forward looking communication in an environment of rising inflation rates on German consumers' inflation expectations using a randomized control trial. We show that information about rising inflation increases short- and long-term inflation expectations. This initial...
Persistent link: https://www.econbiz.de/10013278897
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How to limit the spillover from the 2021 inflation surge to inflation expectations?
Dräger, Lena; Lamla, Michael; Pfajfar, Damjan - 2022
By providing numerical inflation projections. Many central banks currently face inflation well above their targets and with that the challenge to prevent spillovers on inflation expectations. We study the effect of different communication about the 2021 inflation surge on German consumers'...
Persistent link: https://www.econbiz.de/10012814490
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How to limit the spillover from an inflation surge to inflation expectations?
Dräger, Lena; Lamla, Michael; Pfajfar, Damjan - 2023
We study the effects of forward-looking communication in an environment of rising inflation rates on German consumers' inflation expectations using a randomized control trial. We show that information about rising inflation increases short- and long-term inflation expectations. This initial...
Persistent link: https://www.econbiz.de/10014247283