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Occasionally binding constraints (OBCs) like the zero lower bound (ZLB) can lead to multiple equilibria, and so to belief-driven recessions. To aid in finding policies that avoid this, we derive existence and uniqueness conditions for otherwise linear models with OBCs. Our main result gives...
Persistent link: https://www.econbiz.de/10013168551
Using a new survey of firms' inflation expectations in France, we provide novel evidence about the measurement and … formation of inflation expectations on the part of firms. First, French firms report inflation expectations with a smaller, but … the wording of questions matters for the measurement of firms' inflation expectations. Third, we document whether and how …
Persistent link: https://www.econbiz.de/10013177710
The purpose of this paper is to investigate the nature of professionals' inflation forecasts inattentiveness. We …
Persistent link: https://www.econbiz.de/10013272185
Using a new survey of firms in New Zealand, we document how exogenous variation in the macroeconomic uncertainty perceived by firms affects their economic decisions. We use randomized information treatments that provide different types of information about the first and/or second moments of...
Persistent link: https://www.econbiz.de/10013351988
Using a new survey of European households, we study how exogenous variation in the macroeconomic uncertainty perceived by households affects their spending decisions. We use randomized information treatments that provide different types of information about the first and/or second moments of...
Persistent link: https://www.econbiz.de/10012605253
We study how firms' expectations and actions are affected by both aggregate and industryspecific conditions using a survey of French manufacturing firms. We document an important new stylized fact. In response to industry-level shocks that have no aggregate effects, firms' aggregate expectations...
Persistent link: https://www.econbiz.de/10012606356
Calculation of the unit cost of financial intermediation for 20 countries from 1970 to 2015 has produced the following results. (i) Most countries' unit costs decline and converge in the long run. (ii) Unit costs were much higher in the 1970s and 1980s, coinciding with high nominal rates, as...
Persistent link: https://www.econbiz.de/10012669490
welfare when alternative instruments are unavailable. Higher in inflation targets instead allow for negative real interest …
Persistent link: https://www.econbiz.de/10012695564
match Canadian macroeconomic data since Canada's adoption of inflation targeting. We use the model to provide a quantitative … assessment of the macroeconomic impact of flexible inflation targeting and some alternative monetary policy regimes. These … alternative monetary policy regimes are average-inflation targeting, price-level targeting and nominal gross domestic product …
Persistent link: https://www.econbiz.de/10013430322
The necessary adjustments to prominent measures of the neutral rate of interest following the COVID pandemic sparked a wide-ranging debate on the measurement and usefulness of r-star. Due to high uncertainty about relevant determinants, trend patterns and the correct estimation method, we...
Persistent link: https://www.econbiz.de/10014363833