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R&D Shocks, News Shocks, and Price Levels

Jinnai, Ryo - 2014

This paper proposes a structural explanation for a news shock. My hypothesis is that a surprise, research and … development sector-specific productivity shock may be identified and labeled as news by prominent empirical research in the … shock, and I apply identification methods proposed in the literature to the simulated data. I find evidence supporting that …

Persistent link: https://www.econbiz.de/10013053771

Understanding persistent ZLB : theory and assessment

Cuba-Borda, Pablo; Singh, Sanjay R. - 2021

Concerns of prolonged stagnation periods with near-zero interest rates and deflation have become widespread in many advanced economies. We build a theoretical framework that rationalizes two theories of low interest rates: expectations-trap and secular stagnation in a unified setting. We...

Persistent link: https://www.econbiz.de/10012797006

The impacts of credit standards on aggregate fluctuations in a small open economy : the role of monetary policy

Le, Hai - In: Economies : open access journal 9 (2021) 4, pp. 1-26

Empirical evidence demonstrates that credit standards, including lending margins and collateral requirements, move in a countercyclical direction. In this study, we construct a small open economy model with financial frictions to generate the countercyclical movement in credit standards. Our...

Persistent link: https://www.econbiz.de/10012800343

How should central banks react to household inflation heterogeneity?

Neyer, Ulrike; Stempel, Daniel - 2022

of the households' consumer price inflation rates or their individual rates, respectively. After a negative demand shock … less under that regime. After a negative supply shock, a central bank only considering the household experiencing the … higher inflation rate mitigates the immediate effects of the shock on both consumer price inflation rates more effectively …

Persistent link: https://www.econbiz.de/10012803661

Heterogeneous Consumers, Segmented Asset Markets, and the Real Effects of Monetary Policy

Enders, Zeno - 2018

This paper proposes a novel mechanism by which changes in the distribution of money holdings have real effects. Specifically, I develop a flexible-price model of segmented asset markets that generates real aggregate effects of monetary policy through the dependence of optimal markups on the...

Persistent link: https://www.econbiz.de/10012933792

Measuring price selection in microdata : it's not there

Karadi, Peter; Schoenle, Raphael; Wursten, Jesse - 2021

We use microdata to estimate the strength of price selection - a key metric for the effect of monetary policy on the real economy. We propose a product-level proxy for mispricing and assess whether products with larger mispricing respond with a higher probability to identified monetary and...

Persistent link: https://www.econbiz.de/10012547543

Revisiting the macroeconomic effects of monetary policy shocks

Doko Tchatoka, Firmin; Haque, Qazi - 2021

We shed new light on the effects of monetary policy shocks in the US. Gertler and Karadi (2015) suggest that movements in credit costs may result in substantial impact of monetary policy shocks on economic activity. Using the proxy SVAR framework, we show that once the Volcker disinflation...

Persistent link: https://www.econbiz.de/10013219833

The COVID-19 Shock and a Fiscal-Monetary Policy Mix in a Monetary Union

Bartocci, Anna; Notarpietro, Alessandro; Pisani, … - 2021

union in response to the COVID-19 shock. The pandemic is modelled as a mix of recessionary demand and supply shocks …

Persistent link: https://www.econbiz.de/10013233159

Monetary non-neutrality in a multisector economy : the role of risk-sharing

Lee, Jae Won; Lee, Seunghyeon - 2021

We show that the extent of risk-sharing among heterogeneous workers is adeterminant of the degree of monetary non-neutrality in a multisector sticky-price model. Workers are employed in different sectors of the economy and, as a consequence, earn different wages. The inability of workers to...

Persistent link: https://www.econbiz.de/10013194728

Monetary Policy and News Shocks : Are Taylor Rules Forward-Looking?

Best, Gabriela - 2015

This paper extends a standard New Keynesian model by introducing anticipated shocks to inflation, output, and interest rates, and by incorporating forward-looking, forecast-targeting Taylor rules. The latter aspect is parsimoniously modeled through the presence of an expected future interest...

Persistent link: https://www.econbiz.de/10013034503