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Inflation Dynamics and International Linkages : A Model of the United States, the Euro Area and Japan

Coenen, Günter; Wieland, Volker - 2021

In this paper we estimate a small macroeconometric model of the United States, the euro area and Japan with rational expectations and nominal rigidities due to staggered contracts. Comparing three popular contracting specifications we find that euro area and Japanese inflation dynamics are best...

Persistent link: https://www.econbiz.de/10013320199

A Small Estimated Euro Area Model with Rational Expectations and Nominal Rigidities

Coenen, Günter; Wieland, Volker - 2021

In this paper we estimate a small model of the euro area to be used as a laboratory for evaluating the performance of alternative monetary policy strategies. We start with the relationship between output and inflation and investigate the fit of the nominal wage contracting model due to Taylor...

Persistent link: https://www.econbiz.de/10013320311

A Small Scale Macroeconometric Model for the Euro-12 Area

Morana, Claudio - 2013

cointegration theory. Several linkages relating key macroeconomic variables are found. Firstly, evidence of a common non linear … long term monetary policy management, is found. Both the quantity theory of money and Fisher's theory of nominal interest … management, is also found. The quantity theory of money, the management of the short term rate by the central bank (Taylor rule …

Persistent link: https://www.econbiz.de/10014060426

The Poole analysis in the new open economy macroeconomic framework

Hoffmann, Mathias; Kempa, Bernd - 2006

This paper evaluates simple, non-optimising monetary policy rules in the tradition of the well-known Poole analysis within a general two-country open-economy model of the New Open Economy Macroeconomic framework. Pure money supply rules are compared with simple interest rate rules for the large...

Persistent link: https://www.econbiz.de/10009525985

Real-Time Estimation of Trend Output and the Illusion of Interest Rate Smoothing

Lansing, Kevin J. - 2002

Empirical estimates of the Federal Reserve's policy rule typically find that the regression coefficient on the lagged federal funds rate is around 0.8 and strongly significant. One economic interpretation of this result is that the Fed intentionally "smoothes" interest rates, i.e., policymakers...

Persistent link: https://www.econbiz.de/10014120664

How useful are simple rules for monetary policy? : the Swedish experience

Berg, Claes; Jansson, Per; Vredin, Anders - 2004

Monetary policy is often analysed in terms of simple rules. Such rules may be useful for many purposes, even when they do not describe the actual monetary policy strategy exactly. This paper compares monetary policy in Sweden during the inflation-targeting regime 19932002 with the policies...

Persistent link: https://www.econbiz.de/10011583820

Business-Cycle Macroeconomics in an Asset Pricing Financial Economy

Tse, Wai Man - 2020

-monetarist-Keynesian Quantity Theory of Money. Whereas the classics and Keynesian differ on equilibrium versus disequilibrium, it justifies the …

Persistent link: https://www.econbiz.de/10012839941

The Macroeconomic Consequences of Wage Indexation Revisited

Jadresic, Esteban - 2006

Since the mid-1970s, there has been considerable research on the macroeconomic consequences of wage indexation. Nonetheless, until recently, this research had not explicitly explored the implications of contracts that index wages to lagged inflation, the usual type of wage indexation observed in...

Persistent link: https://www.econbiz.de/10012782369

Beyond DSGE : A Macrodynamic Model with Intertemporal Coordination Failure

Mazzocchi, Ronny - 2010

The current consensus in macroeconomics, or New Neoclassical Synthesis (NNS), is based on dynamically stochastic general equilibrium (DSGE) modelling with a RBC core to which nominal rigidities are added by way of imperfect competition. The strategy is to minimize the frictions that are required...

Persistent link: https://www.econbiz.de/10013147927

Macroeconomic Modeling When Agents are Imperfectly Informed

De Grauwe, Paul - 2013

DSGE-models have become important tools of analysis not only in academia but increasingly in the board rooms of central banks. The success of these models has much to do with the coherence of the intellectual framework it provides. The limitations of these models come from the fact that they...

Persistent link: https://www.econbiz.de/10012753586