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Information Acquisition by Price-Setters and Monetary Policy

Hahn, Volker - 2007

In this paper we examine a model where firms decide on the intensity of information acquisition about shocks. We … analyze how the monetary policy framework impacts on the aggregate amount of information collected by firms. We show that it … output above its long-run level. Transparency of central banks about economic shocks has ambiguous effects on welfare. If an …

Persistent link: https://www.econbiz.de/10012729170

Estimates of the Natural Rate of Interest and the Stance of Monetary Policies : A Critical Assessment

Levrero, Enrico - 2019

Starting with the literature on the estimates of the natural rate of interest, this paper critically analyzes the modern practice of identifying the benchmark rate of monetary policy with an equilibrium or neutral interest rate reflecting “fundamental forces” unaffected by monetary factors....

Persistent link: https://www.econbiz.de/10012891243

Fisherian Futures Market

Kim, Bryce - 2015

The very fact that utility maximization in real business cycle and New Keynesian models is intertemporal suggests the possibility of a Fisherian intertemporal futures market, which is not state-contingent. Ex-ante speaking, the addition of a futures market does not result in any difference, but...

Persistent link: https://www.econbiz.de/10013010276

Interest Rate-Driven Growth in a New Keynesian Model with Capital : Sticky-Price Growth Model

Kim, Bryce - 2015

This paper presents a re-interpretation of a New Keynesian model with capital, where zero long-run output gap restriction is eliminated and a certain type of assumption regarding risk-less nominal interest rate is adopted

Persistent link: https://www.econbiz.de/10013010835

Won't Get Fooled Again – Or Will We? Monetary Policy, Model Uncertainty, and ‘Policy Model Complacency’

Setterfield, Mark - 2015

The question addressed in this paper is: can monetary policy succeed in stabilizing the economy even when the policy model on which it is predicated is mis-specified? Using variants of the 3-equation New Consensus Macroeconomics model, it is shown that this question can be answered in the...

Persistent link: https://www.econbiz.de/10013019187

The EAGLE model for Hungary : a global perspective

Békesi, László; Kaszab, Lóránt; Szentmihályi, Szabolcs - 2017

In this paper we adopt the Hungarian version of the EAGLE (Euro Area GLobal Economy) model. The version of the EAGLE model used in this paper allows for the high import content of export - a typical feature of small open economies such as Hungary. We study the effects of four globally important...

Persistent link: https://www.econbiz.de/10011674240

Macroprudential policies in the EAGLE FLI model calibrated for Hungary

Fukker, Gábor; Kaszab, Lóránt - 2019

In this paper we develop the Hungarian version of the EAGLE FLI (Euro Area GLobal Economy model with Financial LInkages) model which is the EAGLE model enriched with financial frictions and country-specific banking sector. The EAGLE FLI features the intermediation of loanable funds (ILF) view in...

Persistent link: https://www.econbiz.de/10011986731

Indeterminacy of Ramsey Model Under Heterogeneous Time Preference, Transversality Condition Issues, Theories of Price Level and Uniform Rate of Interest

Kim, Bryce - 2016

This paper presents a simple Ramsey-type model example where two infinitely-living agents have same utility function except for time preference, and shows that equilibrium is indeterminate that is to be interpreted as being non-existent. The issues regarding New Keynesian transversality...

Persistent link: https://www.econbiz.de/10012982564

The Neoliberal Legitimation Crisis of 2008

Habbu, Aditya (Adi) - 2011

This paper will discuss how the Financial Crisis of 2008 has thrown neoliberalism into a deep legitimation crisis. Over the past four decades the neoliberal ethic of Ronald Reagan and Margaret Thatcher has permeated American life both public and private. The principles of the laissez faire...

Persistent link: https://www.econbiz.de/10014179691

The Politicization of Monetary Policy – Revisiting Central Bank Independence in the Light of the Current Political Climate

Küpfer, Mathias - 2020

Independent central banking has experienced a surge in public and academic attention during the past few years, and even more so during the ongoing COVID-19 crisis. An expanding toolset, heightened prominence and increasingly controversial policies have arguably pushed independent monetary...

Persistent link: https://www.econbiz.de/10014090553