Narrow search
Showing 1 - 10 of 21,406
Cover Image
Prudent Monetary Policy: Applications of Cautious LQG Control and Prediction
van der Ploeg, Frederick - C.E.P.R. Discussion Papers - 2004
less strongly to new measurements of the output gap. Prudence attenuates this policy reaction and biases the prediction of … modelling errors, since precaution reduces the power of its instruments by these variances. Also, prudence implies less weight … to new uncertain observations that are less important for welfare and introduces a bias in prediction. Prudent …
Persistent link: https://www.econbiz.de/10005114367
Cover Image
Unions power, collective bargaining and optimal monetary policy
Faia, Ester; Rossi, Lorenza - 2008
We study the design of optimal monetary policy (Ramsey policies) in a model with sticky prices and unionized labour markets. Collective wage bargaining and unions monopoly power tend to dampen wage fluctuations and to amplify employment fluctuations relatively to a DNK model with walrasian...
Persistent link: https://www.econbiz.de/10010263549
Cover Image
Unions Power, Collective Bargaining and Optimal Monetary Policy
Faia, Ester; Rossi, Lorenza - Institut für Weltwirtschaft (IfW) - 2009
We study the design of optimal monetary policy (Ramsey policies) in a model with sticky prices and unionized labour markets. Collective wage bargaining and unions monopoly power tend to dampen wage fluctuations and to amplify employment fluctuations relatively to a DNK model with walrasian...
Persistent link: https://www.econbiz.de/10005076091
Cover Image
Inflationary Redistribution, Trading Opportunities and Consumption Inequality
Kam, Timothy; Lee, Junsang - 2022
We study competitive search in goods markets in a heterogeneous-agent monetary model. The model accounts for three stylized facts connecting inflation to consumption inequality, to price dispersion, and to the speed of monetary payments. With competitive search, individuals’ endogenous...
Persistent link: https://www.econbiz.de/10013294758
Cover Image
A Nudged Solution to Securities Fraud
Eckhart, Sonny - 2012
History has shown that crisis often serves as a condition precedent to social and regulatory reform. Since the 1990s, the public interest has also taken an advanced role in these reforms. As we have grown in scientific, technological, and economic sophistication, the public has increasingly...
Persistent link: https://www.econbiz.de/10013104918
Cover Image
Safety Traps, Liquidity and Information-Sensitive Assets
Loberto, Michele - 2019
We investigate the implications of a scarcity of safe assets in a framework in which the safety of an asset is an equilibrium outcome. The intrinsic characteristics and supply of the assets determine their liquidity properties and degree of safeness. The equilibrium can be inefficient even if...
Persistent link: https://www.econbiz.de/10012865225
Cover Image
Price subsidies and the conduct of monetary policy
Aïssa, Ben; Safouane, Mohamed; Rebei, Nooman - In: Journal of Macroeconomics 34 (2012) 3, pp. 769-787
This paper investigates optimized monetary policy rules in the presence of government intervention to stabilize prices of certain categories of goods and services. The paper estimates a small-scale, structural equilibrium model with a sticky-price sector and a subsidized-price sector for a large...
Persistent link: https://www.econbiz.de/10011065351
Cover Image
Chaotic Interest Rate Rules
Benhabib, Jess; Schmitt-Grohe, Stephanie; Uribe, Martin - Society for Computational Economics - SCE - 2001
When the Central Bank sets nominal rates as a a non-decreasing function of the inflation rate to stabilize the economy, that is it uses a Taylor Rule, the zero lower bound on interest rates may result in multiple equilibria and a liquidity trap. However, if fiscal policy is non-Ricardian, or...
Persistent link: https://www.econbiz.de/10005345604
Cover Image
A global analysis of liquidity effects, interest rate rules, and deflationary traps
Kudoh, Noritaka - In: Economics Bulletin 29 (2009) 2, pp. 1492-1498
The prevailing models of liquidity traps suggest that a deflationary trap is a stable steady state in a multiple equilibria model. These models implicitly assume that the central bank accelerates the process of disinflation by following a Taylor rule even though there is a long run positive...
Persistent link: https://www.econbiz.de/10008562808
Cover Image
Does the ECB respond to the stock market?
Wouter Botzen, W.J.; Marey, Philip S. - Faculteit der Economische Wetenschappen en … - 2006
The role of asset prices in monetary policy has been widely debated. This paper examines the role that stock prices play in the monetary policy of the ECB. For this purpose, standard and augmented forward-looking Taylor rules are estimated for the ECB using monthly data between 1999 and 2005. Of...
Persistent link: https://www.econbiz.de/10010782656