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Price stability and debt sustainability under endogenous trend growth

Schmöller, Michaela; McClung, Nigel - 2024

This paper studies price stability and debt sustainability when the real rate exceeds trend growth (r > g) in a New …

Persistent link: https://www.econbiz.de/10014457581

Endogenous Technology, Scarring and Fiscal Policy

Elfsbacka Schmöller, Michaela - 2023

This paper studies fiscal policy in a New Keynesian DSGE model with endogenous technology growth in which scarring can occur endogenously through hysteresis effects in TFP. Both demand- and supply-driven recessions can weaken investment in R&D and technology adoption, thus depressing the...

Persistent link: https://www.econbiz.de/10014261830

Short-term price rigidity in an endogenous growth model: Non-Superneutrality and a non-vertical long-term Phillips-curve

Funk, Peter; Kromen, Bettina - Staatswissenschaftliches Seminar, Wirtschafts- und … - 2006

This model analyses the interaction between inflation and the long-run levels of employment and output growth in a Schumpeterian growth model with quality improving innovations under nominal price rigidity. At the unique REE steady state equilibrium, both employment and growth are hump-shaped...

Persistent link: https://www.econbiz.de/10005572272

Robustly optimal monetary policy with near-rational expectations

Woodford, Michael - In: The American economic review 100 (2010) 1, pp. 274-303

Persistent link: https://www.econbiz.de/10008729179

Indeterminacy of Ramsey Model Under Heterogeneous Time Preference, Transversality Condition Issues, Theories of Price Level and Uniform Rate of Interest

Kim, Bryce - 2016

This paper presents a simple Ramsey-type model example where two infinitely-living agents have same utility function except for time preference, and shows that equilibrium is indeterminate that is to be interpreted as being non-existent. The issues regarding New Keynesian transversality...

Persistent link: https://www.econbiz.de/10012982564

Robustly Optimal Monetary Policy with Near-Rational Expectations

Woodford, Michael - In: American Economic Review 100 (2010) 1, pp. 274-303

The paper considers optimal monetary stabilization policy in a forward-looking model, when the central bank recognizes that private sector expectations need not be precisely model-consistent, and wishes to choose a policy that will be as good as possible in the case of any beliefs that are close...

Persistent link: https://www.econbiz.de/10008622171

Robustno optimalna monetarna politika sa skoro-racionalnim ocekivanjima

Woodford, Michael - In: Panoeconomicus 58 (2011) 2, pp. 157-193

U radu se razmatra optimalna politika monetarne stabilizacije unutar dalekovidog modela kada centralna banka uvida da ocekivanja privatnog sektora ne moraju biti nužno konzistentna modelu, i želi da izabere politiku zadovoljavajucu u slucaju bilo kog uverenja dovoljno bliskog konzistentnosti...

Persistent link: https://www.econbiz.de/10009141598

Testing the balanced growth hypothesis in the presence of structural breaks : evidence from developed and developing countries

Arjun; Mishra, Bibhuti Ranjan - In: Prague economic papers : a bimonthly journal of … 33 (2024) 1, pp. 1-35

The balanced growth theory and the neoclassical growth model predict that certain macroeconomic variables such as output, consumption, and investment grow at a constant rate. Analytically, it indicates that the consumption-output ratio and the investment-output ratio (termed "great ratios") must...

Persistent link: https://www.econbiz.de/10014516266

Monetary Misperceptions : Optimal Monetary Policy Under Incomplete Information

Halperin, Basil - 2018

Inflation targeting is strictly suboptimal when economic actors have incomplete information about the state of the economy. Nominal income targeting is approximately optimal, and exactly optimal under certain parameterizations. We derive this result in a “Lucas islands” monetary...

Persistent link: https://www.econbiz.de/10012933106

The Role of Policymakers in Business Cycle Fluctuations

Granato, Jim; Wong, M. C. Sunny - 2003

conditions and explore the possibility under which a policy tack that targets inflation stability, output stability, or both, can … efficient business cycle outcomes (inflation and output stability). We find that there is a range of inflation and output target … indicate that IOCS only applies to inflation and output stability, and that implementing IOCS targeting procedures creates …

Persistent link: https://www.econbiz.de/10014102995