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ability of money-based forecasts relative to a simple random walk benchmark model was high at medium-term forecasting horizons …
Persistent link: https://www.econbiz.de/10011604913
We construct a monetary economy in which agents face aggregate demand shocks and heterogeneous idiosyncratic preference shocks. We show that, even when the Friedman rule is the best interest rate policy the central bank can implement, not all agents are satiated at the zero lower bound and...
Persistent link: https://www.econbiz.de/10011442898
The monetary economy has properties that cannot be analyzed using the tools of today's dynamic general equilibrium analysis. Keynes's economics, far from being an aberration in the otherwise orderly evolution of modern macroeconomics from Adam Smith's ideas about the invisible hand, was a major...
Persistent link: https://www.econbiz.de/10010291902
consumption function and the demand for money, not to mention monetary history, which helped to undermine the post World War 2 … case for a money growth rule, and the expectations augmented Phillips curve are then taken up, followed by a discussion of …
Persistent link: https://www.econbiz.de/10010291906
This paper assesses the performance of monetary indicators in predicting euro area HICP inflation out-of-sample over the period since the start of EMU considering a wide range of forecasting models, including standard bivariate forecasting models, factor models, simple combination forecasts as...
Persistent link: https://www.econbiz.de/10010295806
consumption function and the demand for money, not to mention monetary history, which helped to undermine the post World War 2 … case for a money growth rule, and the expectations augmented Phillips curve are then taken up, followed by a discussion of …
Persistent link: https://www.econbiz.de/10010681093
In this working paper we attempted to analysis on money combining the economic and the institutional dimension, on the … grounds that we cannot refer to money, in the context of analyzing the human society, strictly from a perspective or another …, separately. The subject of our paper implies the concept of “money” approach from two perspectives: institutional and functional …
Persistent link: https://www.econbiz.de/10010684321
population-level interactions. I apply this framework on the case of money, analyzing the emotions that go along with the use of … money, and presenting a stylized account of the emergence of money in terms of the naturalized Searle-Aoki model. In this … view, money is a neuronally anchored metaphor for emotions relating with social exchange and reciprocity. Money as a meme …
Persistent link: https://www.econbiz.de/10010307556
We re-connect money to in.ation using Goodfriend and McCallum's (2007) model where banks supply loans to cash … shocks to monitoring and collateral dominate those to goods productivity and the velocity of money demand, money and the … tends to be inflationary. Thus money and financial spreads are negatively correlated when banking sector shocks dominate. We …
Persistent link: https://www.econbiz.de/10010277852