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Supply Shocks and Optimal Monetary Policy in the Euro Zone

Fève, Patrick - 2010

responses of output, inflation, labor share and the nominal interest rate to a supply shock as identified through a structural …

Persistent link: https://www.econbiz.de/10013137972

Output Gap in Presence of Financial Frictions and Monetary Policy Trade-Offs

Furlanetto, Francesco - 2014

The recent global financial crisis illustrates that financial frictions are a significant source of volatility in the economy. This paper investigates monetary policy stabilization in an environment where financial frictions are a relevant source of macroeconomic fluctuation. We derive a measure...

Persistent link: https://www.econbiz.de/10013049145

Reconciling Narrative Monetary Policy Disturbances with Structural VAR Model Shocks?

Kliem, Martin - 2016

Structural VAR studies disagree with narrative accounts about the history of monetary policy disturbances. We investigate whether employing the narrative monetary shock account as a proxy variable in a VAR model aligns both shock series. We quantify the extent to which the disagreement still...

Persistent link: https://www.econbiz.de/10012988778

Understanding persistent ZLB : theory and assessment

Cuba-Borda, Pablo; Singh, Sanjay R. - 2021

Concerns of prolonged stagnation periods with near-zero interest rates and deflation have become widespread in many advanced economies. We build a theoretical framework that rationalizes two theories of low interest rates: expectations-trap and secular stagnation in a unified setting. We...

Persistent link: https://www.econbiz.de/10012797006

Measuring price selection in microdata : it's not there

Karadi, Peter; Schoenle, Raphael; Wursten, Jesse - 2021

We use microdata to estimate the strength of price selection - a key metric for the effect of monetary policy on the real economy. We propose a product-level proxy for mispricing and assess whether products with larger mispricing respond with a higher probability to identified monetary and...

Persistent link: https://www.econbiz.de/10012547543

Monetary Policy and News Shocks : Are Taylor Rules Forward-Looking?

Best, Gabriela - 2015

This paper extends a standard New Keynesian model by introducing anticipated shocks to inflation, output, and interest …

Persistent link: https://www.econbiz.de/10013034503

What's up with the Phillips curve?

Del Negro, Marco; Lenza, Michele; Primiceri, Giorgio E.; … - 2020

an estimated DSGE model. It finds that the disconnect is due primarily to the muted reaction of inflation to cost … inflation stabilization also appears to have played some role by reducing the impact of demand shocks on the real economy. The …

Persistent link: https://www.econbiz.de/10012241237

Understanding persistent stagnation

Cuba-Borda, Pablo; Singh, Sanjay R. - 2019 - This version: February 2019

We theoretically explore long-run stagnation at the zero lower bound in a representative agent framework. We analytically compare expectations-driven stagnation to a secular stagnation episode and find contrasting policy implications for changes in government spending, supply shocks and...

Persistent link: https://www.econbiz.de/10012004630

Demand Shocks, Hysteresis and Monetary Policy

Sim, Jae - 2022

This paper builds a micro-founded general equilibrium model of hysteresis in which changing composition of firms with heterogeneous qualities in response to demand shocks alter the total factor productivity of the economy through a process of "creative destruction". Hysteresis fundamentally...

Persistent link: https://www.econbiz.de/10014238148

Strike while the iron is hot : optimal monetary policy with a nonlinear Phillips curve

Karadi, Peter; Nakov, Anton; Nuño, Galo; Pasten, Ernesto; … - 2024 - This version: September 19, 2024

model provides micro-foundations for a nonlinear Phillips curve: the sensitivity of inflation to activity increases after … large shocks due to an endogenous rise in the frequency of price changes, as observed during the recent inflation surge. In … response to large cost-push shocks, optimal policy leverages the lower sacrifice ratio to reduce inflation and stabilize the …

Persistent link: https://www.econbiz.de/10015071168