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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
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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
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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
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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
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Investment in capital markets
Ledenyov, Dimitri O.; Ledenyov, Viktor O. - 2017
Investment in Capital Markets creates a strategic vision on the financial capital investment in the capital markets with the aim to get an increased return premium in the short and long time periods. The book is written with a main goal to explain the pros and cons of the financial capital...
Persistent link: https://www.econbiz.de/10015255145
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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
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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
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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
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Why are target interest rate changes so persistent?
Coibion, Olivier; Gorodnichenko, Yuriy - Department of Economics, College of William & Mary - 2011
We investigate the source of the high persistence in the Federal Funds Rate relative to the predictions of simple Taylor rules. While much of the literature assumes that this reflects interest-smoothing on the part of monetary policy-makers, an alternative explanation is that it represents...
Persistent link: https://www.econbiz.de/10008804906
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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