Narrow search
Showing 1 - 10 of 867,636
Cover Image
How to escape a liquidity trap with interest rate rules
Duarte, Fernando - 2016
rely on the Neo-Fisherian mechanism of inducing an increase in inflation by first increasing interest rates. …
Persistent link: https://www.econbiz.de/10011477354
Cover Image
Inflation persistence, Price Indexation and Optimal Simple Interest Rate Rules
Ascari, Guido; Branzoli, Nicola - 2010
model indexation regulates the sources of inflation persistence. When indexation is zero, the inflation gap is purely … forward- looking and inflation persistence depends only on the level of trend inflation, while full indexation makes the … inflation gap persistent and it eliminates the effects of trend inflation. We show that in the former case the optimal policy is …
Persistent link: https://www.econbiz.de/10010343884
Cover Image
Inflation, markups and monetary policy
Jonsson, Magnus; Palmqvist, Stefan Ulf - 2003
The correlation between persistent changes in the markup in one sector of an economy and the inflation rate is …. We find that the correlation is in general positive under an exogenous money growth rule as well as under an inflation … targeting rule. That is, a decrease of the markup leads to a decrease in the CPI-inflation rate. However, if inflation is …
Persistent link: https://www.econbiz.de/10011585093
Cover Image
Hopf bifurcation from new-Keynesian Taylor rule to Ramsey optimal policy
Chatelain, Jean-Bernard; Ralf, Kirsten - 2017
targets (inflation and output gap) are forward-looking variables in the new-Keynesian theory …
Persistent link: https://www.econbiz.de/10011695130
Cover Image
Stabilisation Bias in Monetary Policy Under Endogenous Price Stickiness
Ellison, Martin - 2005
model. We find that the modification reduces the optimal degree of inflation stabilization to which the central bank should … commit. The reason is that less inflation stabilization encourages firms to review their prices more frequently. The economy … becomes more flexible and the Phillips-curve tradeoff is improved, making it easier for the central bank to control inflation …
Persistent link: https://www.econbiz.de/10014113896
Cover Image
Discretionary monetary policy in the Calvo model
Van Zandweghe, Willem; Wolman, Alexander L. - In: Quantitative economics : QE ; journal of the … 10 (2019) 1, pp. 387-418
We study discretionary equilibrium in the Calvo pricing model for a monetary authority that chooses the money supply, producing three main contributions. First, price‐adjusting firms have a unique equilibrium price for a broad range of parameterizations, in contrast to earlier results for the...
Persistent link: https://www.econbiz.de/10011994913
Cover Image
Gains from wage flexibility and the zero lower bound
Billi, Roberto M.; Galí, Jordi - 2019
We analyze the welfare impact of greater wage flexibility while taking into account explicitly the existence of the zero lower bound (ZLB) constraint on the nominal interest rate. We show that the ZLB constraint generally amplifies the adverse effects of greater wage flexibility on welfare when...
Persistent link: https://www.econbiz.de/10011990051
Cover Image
Labor turnover costs, workers' heterogeneity and optimal monetary policy
Faia, Ester; Lechthaler, Wolfgang; Merkl, Christian - 2009
state contingent inflation taxes/subsidies to smooth those rents. Hence, in the optimal Ramsey plan, inflation deviates from … zero and the optimal volatility of inflation is an increasing function of firing costs. The optimal rule should react to … employment alongside inflation. -- Optimal monetary policy ; hiring and firing costs ; labor market frictions ; policy trade-off …
Persistent link: https://www.econbiz.de/10003864487
Cover Image
Optimal monetary and fiscal policy with a zero bound on nominal interest rates
Schmidt, Sebastian - 2012
I characterize optimal monetary and fiscal policy in a stochastic New Keynesian model when nominal interest rates may occasionally hit the zero lower bound. The benevolent policymaker controls the short-term nominal interest rate and the level of government spending. Under discretionary policy,...
Persistent link: https://www.econbiz.de/10010391983
Cover Image
Labor turnover costs, workers' heterogeneity, and optimal monetary policy
Faia, Ester; Lechthaler, Wolfgang; Merkl, Christian - 2009
state contingent inflation taxes/subsidies to smooth those rents. Hence, in the optimal Ramsey plan, inflation deviates from … zero and the optimal volatility of inflation is an increasing function of firing costs. The optimal rule should react to … employment alongside inflation. -- Optimal monetary policy ; hiring and firing costs ; labor market frictions ; policy trade-off …
Persistent link: https://www.econbiz.de/10003879356