-
作者：Braggion, Fabio; Christiano, Lawrence J.; Roldos, Jorge
作者单位：Northwestern University; Tilburg University; National Bureau of Economic Research; International Monetary Fund
摘要：In the wake of the 1997-98 financial crises, interest rates in Asia were raised immediately, and then reduced sharply. We describe an environment in which this is the optimal monetary policy. The optimality of the immediate rise in the interest rate is an example of the theory of the second best: although high interest rates introduce an inefficiency wedge into the labor market, they are nevertheless welfare improving because they mitigate distortions due to binding collateral constraints. Ove...
-
作者：Chen, Kaiji; Imrohoroglu, Ayse; Imrohoroglu, Selahattin
作者单位：University of Southern California; University of Hong Kong
摘要：Low frequency changes in the U.S. current account can be understood in terms of the influence of differences in productivity growth rates across time and across countries using standard growth theory. In particular, the secular decline is primarily driven by the increase in the U.S. TFP growth rate relative to its trading partners. Differences in population growth rates or fiscal policy have no significant effects on the low frequency changes in the U.S. current account. (C) 2009 Elsevier B.V....
-
作者：McCallum, Bennett T.
作者单位：Carnegie Mellon University; National Bureau of Economic Research
-
作者：Collard, Fabrice; Dellas, Harris; Smets, Frank
作者单位：University of Bern; University of Adelaide; European Central Bank; Ghent University
摘要：Imperfect information has played a prominent role in modern business cycle theory. This paper assesses its importance by estimating the new Keynesian (NK) model under alternative informational assumptions. One Version focuses on confusion between temporary and persistent disturbances. Another, on unobserved variation in the inflation target of the Central Bank. A third on persistent mis-perceptions of the state of the economy (measurement error). And a fourth assumes perfect information (the s...
-
作者：Thomas, Carlos; Zanetti, Francesco
作者单位：Banco de Espana; Bank of England
摘要：Central bankers frequently suggest that labor market reform may be beneficial for inflation management. This paper investigates this topic by simulating the effects of reductions in firing costs and unemployment benefits on inflation volatility in the Euro Area, using an estimated New Keynesian model with search and matching frictions. Qualitatively, changes in labor market policies alter the volatility of inflation in response to shocks, by affecting the volatility of the three components of ...
-
作者：Polgreen, Linnea; Silos, Pedro
作者单位：Federal Reserve System - USA; Federal Reserve Bank - Atlanta; University of Iowa
摘要：At the business cycle frequency, energy prices and the skill premium display a strong, negative correlation. This fact is robust to different de-trending procedures. Identifying exogenous shocks to oil prices using the Hoover-Perez [1994. Post hoc ergo propter once more: an evaluation of 'Does monetary policy matter?' in the spirit of James Tobin. journal of Monetary Econonmics 34, 47-73] dates, shows that the skill premium falls in response to Such a shock. The estimation of the parameters of...
-
作者：Elsby, Michael W. L.
作者单位：University of Michigan System; University of Michigan; National Bureau of Economic Research
摘要：The existence of downward nominal wage rigidity has been abundantly documented, but what are its economic implications? This paper demonstrates that, even when wages are allocative, downward wage rigidity can be consistent with weak macroeconomic effects. Firms have an incentive to compress wage increases as well as wage cuts when downward wage rigidity binds. By neglecting compression of wage increases, previous literature may have overstated the costs of downward wage rigidity to firms. Usin...
-
作者：Primiceri, Giorgio E.; van Rens, Thijs
作者单位：Northwestern University; National Bureau of Economic Research; Centre de Recerca en Economia Internacional (CREI); Pompeu Fabra University
摘要：Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of transitory shocks? The implications for consumption and welfare depend crucially on the answer to this question. We use Consumer Expenditure Survey (CEX) repeated cross-section data on consumption and income to decompose idiosyncratic changes in income into predictable life-cycle changes, transitory and permanent shocks and estimate the contribution of each to total inequality. O...
-
作者：Woodford, Michael
作者单位：Columbia University
摘要：A model is presented in which decisions about when to review a firm's existing price must be made on the basis of imprecise awareness of current market conditions. Imperfect information is endogenized using a variant of the theory of rational inattention proposed by Sims [1998. Stickiness. Carnegie-Rochester Conference Series on Public Policy 49, 317-356; 2003. Implications of rational inattention. journal of Monetary Economics 50, 665-690; 2006. Rational inattention: a research agenda. Unpubl...
-
作者：Rappoport, Veronica
作者单位：Columbia University
摘要：Credit contracts in developing countries are often denominated in foreign currencies, even after many of these economies succeeded in controlling inflation. This paper proposes a new interpretation of this apparent puzzle based on the demand for insurance against real shocks: the fact that devaluations occur more frequently in adverse states of the world provides a motive for holding dollar assets. This approach implies a complementarity between the optimal monetary policy and the currency den...
