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Nominal Rigidities, Rational Inattention, and the Optimal Price Index Stabilization Policy

Ou, Shengliang; Yin, Penghui; Zhang, Donghai; Zhang, Renbin - 2023

The Optimal Price Index (OPI) stabilization policy traditionally assigns greater importance to stabilize prices in sectors with stickier prices based on multi-sector models with full information or exogenous information frictions. The current paper challenges this prevailing policy prescription...

Persistent link: https://www.econbiz.de/10014352828

Average Inflation Targeting in a Behavioral Heterogeneous Agent New Keynesian Model

Masek, Frantisek; Žemlička, Jan - 2023

We analyze the optimal window length in the average inflation targeting rule within a Behavioral THANK model of Pfäuti … effects of uncertainty about hitting the ELB in the future, leading to a downward inflation bias in the case of the global …

Persistent link: https://www.econbiz.de/10014256115

Online Appendix : Average Inflation Targeting in a Behavioral Heterogeneous Agent New Keynesian Model

Masek, Frantisek; Žemlička, Jan - 2023

Online appendix to the article "Average Inflation Targeting in a Behavioral Heterogeneous Agent New Keynesian Model …

Persistent link: https://www.econbiz.de/10014257318

The Markup Elasticity of Monetary Non-Neutrality

Höynck, Christian; Li, Minghao; Zhang, Donghai - 2022

Firms’ market power, measured by markups, has risen substantially and unequally across sectors. To evaluate the implications of these trends for monetary non-neutrality, we develop a quantitative menu cost model that covers multiple sectors with heterogeneous degrees of market competition. Two...

Persistent link: https://www.econbiz.de/10014237117

Behavioral New Keynesian Models : Learning vs. Cognitive Discounting

Meggiorini, Greta; Milani, Fabio - 2021

This paper estimates a New Keynesian model with new and old behavioral elements. Agents in the model exhibit cognitive discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model. We investigate the model under different...

Persistent link: https://www.econbiz.de/10013229788

Optimal Monetary Policy and Downward Nominal Wage Rigidity in Frictional Labor Markets

Abo-Zaid, Salem M. - 2013

This paper studies the optimal long-run inflation rate in a labor search and matching framework in the presence of … downward nominal wage rigidity. Optimal monetary policy features positive inflation in the long run; the optimal annual long …-run inflation rate for the U.S. economy is slightly below 1 percent with a money demand motive and around 2 percent otherwise …

Persistent link: https://www.econbiz.de/10013094753

The hockey stick Phillips curve and the zero lower bound

Böhl, Gregor; Lieberknecht, Philipp - 2021

The recently observed disconnect between inflation and economic activity can be explained by the interplay between the … offset the effect of lower factor costs and induce only moderate inflation responses. The Phillips curve is hence flat at the …

Persistent link: https://www.econbiz.de/10012432969

Monetary policy rules and oil price shocks

Kamps, Christophe - 2002

Persistent link: https://www.econbiz.de/10013261171

Monetary policy rules and oil price shocks

Kamps, Christophe; Pierdzioch, Christian - 2002

implications for monetary policy as the central bank has to decide which inflation rate to target. Our results demonstrate that …

Persistent link: https://www.econbiz.de/10011474645

Changes in monetary regimes and the identification of monetary policy shocks : narrative evidence from Canada

Champagne, Julien; Sekkel, Rodrigo - 2017

by the announcement of inflation targeting in 1991 when estimating the effects of monetary policy. For instance, we find …

Persistent link: https://www.econbiz.de/10011777945