Showing 1 - 10 of 199
Persistent link: https://www.econbiz.de/10010467401
This paper examines the behavior of the finance premium after technology and monetary shocks in a dynamic stochastic general equilibrium (DSGE) model where borrowers use a fraction of their production (output) as collateral. We show that this simple framework is capable of producing a...
Persistent link: https://www.econbiz.de/10011763703
The starting point of this project is the question of whether the macroeconomics of the German political establishment does indeed differ, as it often seems to do, from standard textbook macroeconomics: in particular, the former appears to neglect demand management (although it may be quite...
Persistent link: https://www.econbiz.de/10011754246
Persistent link: https://www.econbiz.de/10009775131
This paper identifies a precautionary banking liquidity shock via a set of sign, zero and forecast variance restrictions imposed. The shock proxies the reluctance of the banking sector to "lend" to the real economy induced by an exogenous change in financial intermediaries' preference for "high"...
Persistent link: https://www.econbiz.de/10012876010
Persistent link: https://www.econbiz.de/10005393438
Persistent link: https://www.econbiz.de/10004971153
This paper examines the role of precautionary liquidity (reserves) and the interest on reserves as two potential determinants of the deposits channel that can help explain the role of monetary policy, particularly at the near zero-bound. Through the deposits channel either of these two...
Persistent link: https://www.econbiz.de/10011902127
Several recent studies highlight the potential bias that may arise in measuring real wage cyclicality. This paper points to the important role of monetary policy in determining the latter. Using a simple model that diverts its focus from relative nominal price and wage rigidities, we show that...
Persistent link: https://www.econbiz.de/10008528419
This paper argues that the rate of equilibrium unemployment depends on the objectives of the central bank. In a model where the central bank uses monetary policy to stabilize the economy, the authors show that unemployment and inflation will be lower with an inflation target than with targets...
Persistent link: https://www.econbiz.de/10005157244