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Credit Crises, Money, and Contractions : A Historical View

Bordo, Michael D. - 2010

The relatively infrequent nature of major credit distress events makes a historical approach particularly useful. Using a combination of historical narrative and econometric techniques, we identify major periods of credit distress from 1875 to 2007, examine the extent to which credit distress...

Persistent link: https://www.econbiz.de/10013144427

House Prices, Consumption, and Monetary Policy : A Financial Accelerator Approach

Aoki, Kosuke; Proudman, James; Vlieghe, Gertjan W. - 2005

There is a live debate about the role of house prices in the transmission mechanism of monetary policy. Do house prices merely reflect macroeconomic conditions, or are there important feedback effects from house prices to other economic variables? We consider a general equilibrium model where...

Persistent link: https://www.econbiz.de/10014087349

Constructing and Estimating a Realistic Optimizing Model of Monetary Policy

Kim, Jinill - 2001

A dynamic stochastic general-equilibrium (DSGE) model with real and nominal, both price and wage, rigidities succeeds in capturing some key nominal features of U.S. business cycles. Additive technology shocks, as well as multiplicative shocks, are introduced and shown to be crucial. Monetary...

Persistent link: https://www.econbiz.de/10014195235

The Equivalence of Wage and Price Staggering in Monetary Business Cycle Models

Edge, Rochelle M. - 2000

Chari, Kehoe, and McGratten's (1998) finding that a standard monetary business cycle model with staggered price setting is unable to generate sufficiently persistent real effects of monetary shocks has engendered a growing literature aimed at developing alternative mechanisms for producing...

Persistent link: https://www.econbiz.de/10014150348

Environmental Policy and Macroeconomic Dynamics in a New Keynesian Model

Annicchiarico, Barbara - 2013

This paper studies the dynamic behaviour of an economy under different environmental policy regimes in a New Keynesian (NK) model with nominal and real uncertainty. We find the following results: (i) an emissions cap policy is likely to dampen macroeconomic fluctuations; (ii) staggered price...

Persistent link: https://www.econbiz.de/10013075447

Monetary policy regimes and the volatility of long-term interest rates

Queijo von Heideken, Virginia (contributor) - 2008

This paper addresses two important questions that have, so far, been studied separately in the literature. First, the paper aims at explaining the high volatility of long-term interest rates observed in the data, which is hard to replicate using standard macro models. Building a small-scale...

Persistent link: https://www.econbiz.de/10003651439

Hysteresis, endogenous growth, and monetary policy

Amador, Sebastián - 2022

I provide evidence of substantial hysteresis (i.e., a situation in which temporary shocks have longrun effects) from … identification by incorporating a mean-unbiased instrumental variable estimator. Results show substantial hysteresis in both human … long lasting responses. I evaluate the aggregate importance of monetary hysteresis with a growth accounting exercise …

Persistent link: https://www.econbiz.de/10013179301

The Japanese Banks in the Lasting Low-, Zero- and Negative-Interest Rate Environment

Murai, Taiki; Schnabl, Gunther - In: Credit and Capital Markets – Kredit und Kapital 54 (2021) 1, pp. 1-16

The bursting of the Japanese bubble economy in the early 1990s put the stage for a lasting low-, zero-, and negative-interest rate environment, which fundamentally changed the business environment for the Japanese commercial banks. On the income side, with interest margins becoming increasingly...

Persistent link: https://www.econbiz.de/10014522518

Complexity and monetary policy

Orphanides, Athanasios; Wieland, Volker - 2012

The complexity resulting from intertwined uncertainties regarding model misspecification and mismeasurement of the state of the economy defines the monetary policy landscape. Using the euro area as laboratory this paper explores the design of robust policy guides aiming to maintain stability in...

Persistent link: https://www.econbiz.de/10010311797

The Canadian neutral rate of interest through the lens of an overlapping-generations model

Kuncl, Martin; Matveev, Dmitry - 2023

The neutral rate of interest is an important concept and communication tool for central banks. We develop a small open economy model with overlapping generations to study the determinants of the neutral real rate of interest in a small open economy. The model captures domestic factors such as...

Persistent link: https://www.econbiz.de/10014541752