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Partial Adjustment and Staggered Price Setting

Kiley, Michael T. - 2001

This paper compares Taylor-style staggered price setting to partial adjustment of prices (or Calvo staggering) in a small optimizing IS/LM model. In contrast to the overwhelming perception in the literature, the models are not similar for most parameterizations. In particular, the dynamic...

Persistent link: https://www.econbiz.de/10014124088

Endogenous Monetary Policy Regime Changes

Davig, Troy - 2013

This paper makes changes in monetary policy rules (or regimes) endogenous. Changes are triggered when certain endogenous variables cross specified thresholds. Rational expectations equilibria are examined in three models of threshold switching to illustrate that (i) expectations formation...

Persistent link: https://www.econbiz.de/10014055201

Endogenous Monetary Policy Regime Change

Davig, Troy; Leeper, Eric M. - 2013

Persistent link: https://www.econbiz.de/10014055631

Staggered Price Setting and Real Rigidities

Kiley, Michael T. - 1998

This paper emphasizes the notion that model features that contribute to endogenous price rigidity under staggered price setting lower the elasticity of marginal cost with respect to output, and these same model features tend to generate equilibrium indeterminacy, or "sunspot fluctuations," under...

Persistent link: https://www.econbiz.de/10014062020

Booms and Busts in Emu

Gottfries, Nils - 2003

A floating exchange rate combined with a clear inflation target can be a powerful stabilizer even if there are fluctuations in exchange rates that are unrelated to current fundamentals. Under plausible conditions, most of the stabilisation will occur through the exchange rate, and fundamental...

Persistent link: https://www.econbiz.de/10014074070

Health Shocks in a General Equilibrium Model

Abo-Zaid, Salem M.; Sheng, Xuguang Simon - 2020

This paper presents a dynamic general equilibrium model with a health shock in a multi-sector model. The health shock … on the strength of each effect, the aggregate inflation rate might increase or decrease following the shock. Another … important channel through which the health shock impacts economic activity is the reallocation of resources from more …

Persistent link: https://www.econbiz.de/10014096938

Do multisectoral New Keynesian models match sectoral data?

Andrade, Philippe; Sheremirov, Viacheslav - 2022 - This version: September 2022

positively. While the baseline model can match some of these facts for a specific shock process, in its baseline setup the model …

Persistent link: https://www.econbiz.de/10013450719

Revisiting the Macroeconomic Effects of Monetary Policy Shocks*

Doko Tchatoka, Firmin; Haque, Qazi - 2022

In this paper, we revisit the debate on the effects of monetary policy shocks in the U.S. economy. In a recent study, Gertler and Karadi (2015) suggest that movements in credit costs help to capture the transmission mechanism of monetary policy to the aggregate economy through the credit...

Persistent link: https://www.econbiz.de/10013306835

News shocks under financial frictions : a comment on Görtz et al. (2022)

Ash, Thomas; Nikolaishvili, Giorgi; Struby, Ethan - 2023

. In a Bayesian vector autoregression, they identify a TFP news shock as one that explains the largest share of 40-quarter … ahead forecast error variance (FEV) of TFP. Their estimated impulse responses functions show that a positive news shock … significantly decreases credit market spreads and increases credit market supply. They also find that a shock that explains the …

Persistent link: https://www.econbiz.de/10014335049

Monitoring Multicountry Macroeconomic Risk

Korobilis, Dimitris; Schröder, Maximilian - 2023

We propose a multicountry quantile factor augmeneted vector autoregression (QFAVAR) to model heterogeneities both across countries and across characteristics of the distributions of macroeconomic time series. The presence of quantile factors allows for summarizing these two heterogeneities in a...

Persistent link: https://www.econbiz.de/10014350458