Showing 71 - 80 of 304
Persistent link: https://www.econbiz.de/10011912519
Persistent link: https://www.econbiz.de/10011747788
Persistent link: https://www.econbiz.de/10011748477
Persistent link: https://www.econbiz.de/10011757995
Standard real-business-cycle models must rely on total factor productivity (TFP) shocks to explain the observed co-movement between consumption, investment and hours worked. This paper shows that a neoclassical model consistent with observed heterogeneity in labor supply and consumption, can...
Persistent link: https://www.econbiz.de/10012463088
This paper analyzes the constraints imposed on monetary and fiscal policy design by expectations formation. Households and firms learn about the policy regime using historical data. Regime uncertainty substantially narrows, relative to a rational expectations analysis of the model, the menu of...
Persistent link: https://www.econbiz.de/10012464256
This paper develops a theory of expectations-driven business cycles based on learning. Agents have incomplete knowledge about how market prices are determined and shifts in expectations of future prices affect dynamics. In a real business cycle model, the theoretical framework amplifies and...
Persistent link: https://www.econbiz.de/10012464466
This paper analyzes the value of communication in the implementation of monetary policy. The central bank is uncertain about the current state of the economy. Households and firms are uncertain about the statistical properties of aggregate variables, including nominal interest rates, and must...
Persistent link: https://www.econbiz.de/10012465393
We develop a theory of low-frequency movements in inflation expectations, and use it to interpret joint dynamics of inflation and inflation expectations for the United States and other countries over the post-war period. In our theory long-run inflation expectations are endogenous. They are...
Persistent link: https://www.econbiz.de/10012853926
We develop a theory of low-frequency movements in inflation expectations, and use it to interpret joint dynamics of inflation and inflation expectations for the United States and other countries over the post-war period. In our theory long-run inflation expectations are endogenous. They are...
Persistent link: https://www.econbiz.de/10012839369