NBER WORKING PAPER SERIES A MODEL OF SECULAR STAGNATION Gauti B. Eggertsson
... deleveraging - rather than facilitating the transition to a new steady state with a positive interest rate - will instead reduce the real rate even further by increasing the supply of savings in the future. The point here is not to predict that the natural rate of interest will necessarily remain ne ...
... deleveraging - rather than facilitating the transition to a new steady state with a positive interest rate - will instead reduce the real rate even further by increasing the supply of savings in the future. The point here is not to predict that the natural rate of interest will necessarily remain ne ...
2.2.1 What
... there is high inflation it could affect their pension since they’ve invested their life savings in some pension schemes. For investors it is also very relevant since they are the ones making all the profit and all the money from this and also some risk. They are having low risk because the inflation ...
... there is high inflation it could affect their pension since they’ve invested their life savings in some pension schemes. For investors it is also very relevant since they are the ones making all the profit and all the money from this and also some risk. They are having low risk because the inflation ...
The United Kingdom`s quantitative easing policy
... Policy signalling effects: This channel includes anything economic agents learn about the likely path of future monetary policy from asset purchases. For example, asset purchases may have led market participants to expect policy rates to remain low for longer than otherwise by signalling the MPC’s d ...
... Policy signalling effects: This channel includes anything economic agents learn about the likely path of future monetary policy from asset purchases. For example, asset purchases may have led market participants to expect policy rates to remain low for longer than otherwise by signalling the MPC’s d ...
From Open-Market Operations to Open-Mouth Policy
... to an end—the achievement of solid, sustained growth in output, employment and incomes over time. IT central banks also use the symmetric feature of the IT framework to address public concerns about the real economy and to communicate their strong commitment to policy action to avoid both the risk o ...
... to an end—the achievement of solid, sustained growth in output, employment and incomes over time. IT central banks also use the symmetric feature of the IT framework to address public concerns about the real economy and to communicate their strong commitment to policy action to avoid both the risk o ...
Optimal fiscal and monetary policy in a medium
... by the European Central Bank, the Board of Governors of the Federal Reserve System, the Center for German and European Studies at Georgetown University and the Center for Financial Studies at Goethe University. Its purpose is to encourage research on monetary policy issues that are relevant from a g ...
... by the European Central Bank, the Board of Governors of the Federal Reserve System, the Center for German and European Studies at Georgetown University and the Center for Financial Studies at Goethe University. Its purpose is to encourage research on monetary policy issues that are relevant from a g ...
Sunspots and perceptions in consumer expectations
... news and the effects of sunspot news is small and transient. Our results do not support this conclusion. We find that sunspot news are important and have long lasting effects on consumer forecasts. Our findings have important implications for the role of news in business cycles that has been a focus ...
... news and the effects of sunspot news is small and transient. Our results do not support this conclusion. We find that sunspot news are important and have long lasting effects on consumer forecasts. Our findings have important implications for the role of news in business cycles that has been a focus ...
paper - Pascal Michaillat
... unemployment is high, sellers do not sell much, which pushes them to reduce their prices to attract customers, thus generating low inflation. Conversely, when unemployment is low, sellers sell a lot but at a low price, which pushes them to increase their prices and take advantage of the long queues ...
... unemployment is high, sellers do not sell much, which pushes them to reduce their prices to attract customers, thus generating low inflation. Conversely, when unemployment is low, sellers sell a lot but at a low price, which pushes them to increase their prices and take advantage of the long queues ...
aggregate supply (AS) curve
... Sustained Inflation as a Purely Monetary Phenomenon Virtually all economists agree that an increase in the price level can be caused by anything that causes the AD curve to shift to the right or the AS curve to shift to the left. It is also generally agreed that for a sustained inflation to occur, t ...
... Sustained Inflation as a Purely Monetary Phenomenon Virtually all economists agree that an increase in the price level can be caused by anything that causes the AD curve to shift to the right or the AS curve to shift to the left. It is also generally agreed that for a sustained inflation to occur, t ...
Reassessing Discretionary Fiscal Policy
... reality, as shown below, real output appears too. The second relationship is between real GDP and the real interest 1-ate-analogous to a n IS curveshowing how a higher real interest rate depresses the demand for goods and services. The third relatiollship is a n expectations-augmellted Phillips curv ...
... reality, as shown below, real output appears too. The second relationship is between real GDP and the real interest 1-ate-analogous to a n IS curveshowing how a higher real interest rate depresses the demand for goods and services. The third relatiollship is a n expectations-augmellted Phillips curv ...
Monetary and Fiscal Policy in a Liquidity Trap:
... of interest significantly deviates from a normal level. This is as if a central bank “borrows” future monetary easing in the periods when current monetary easing is exhausted. This idea of borrowing future easing has been discussed not only in the academic arena, but also in the policy-making proces ...
... of interest significantly deviates from a normal level. This is as if a central bank “borrows” future monetary easing in the periods when current monetary easing is exhausted. This idea of borrowing future easing has been discussed not only in the academic arena, but also in the policy-making proces ...
Vo l u m e 6 5 ... C o n t e n t s
... For most of the period since 1994, the target range for annual Consumers Price Index (CPI) inflation, established by the Policy Targets Agreements (PTA), was 0 to 3 per cent. Over this period, actual CPI inflation has averaged 2 per cent. As one might expect, analysis shows that our medium-term CPI ...
... For most of the period since 1994, the target range for annual Consumers Price Index (CPI) inflation, established by the Policy Targets Agreements (PTA), was 0 to 3 per cent. Over this period, actual CPI inflation has averaged 2 per cent. As one might expect, analysis shows that our medium-term CPI ...
NBER WORKING PAPER SERIES AN ALTERNATIVE INTERPRETATION
... historically typical inflation levels requires much stronger responses to inflation than anything observed in empirical estimates of central banks’ reaction functions. ...
... historically typical inflation levels requires much stronger responses to inflation than anything observed in empirical estimates of central banks’ reaction functions. ...
Inflation and the Housing Market
... will be limited by its current income and the fraction thereof it can devote to housing. It can be seen from Table 1 that a household with an annual income of say $10,000 and a mortgage of $20,000 could, in the absence of inflation, service the debt throughout the life of the mortgage with 10 percen ...
... will be limited by its current income and the fraction thereof it can devote to housing. It can be seen from Table 1 that a household with an annual income of say $10,000 and a mortgage of $20,000 could, in the absence of inflation, service the debt throughout the life of the mortgage with 10 percen ...
Labor Markets and Monetary Policy: A New
... he New Keynesian model (the NK model, for short) has emerged as a powerful tool for monetary policy analysis in the presence of nominal rigidities. Its adoption as the backbone of the medium-scale models currently developed by many central banks and policy institutions is a clear reflection of its s ...
... he New Keynesian model (the NK model, for short) has emerged as a powerful tool for monetary policy analysis in the presence of nominal rigidities. Its adoption as the backbone of the medium-scale models currently developed by many central banks and policy institutions is a clear reflection of its s ...
DP2010/04 Internationalised Production in a Small Open Economy Aur´
... prices and exchange rates are passed through domestic macroeconomic variables. As long as intermediate output can be sold internationally, movements in exchange rates modify the demand for domestically produced intermediate goods. Since the relative price of intermediate goods enters the marginal co ...
... prices and exchange rates are passed through domestic macroeconomic variables. As long as intermediate output can be sold internationally, movements in exchange rates modify the demand for domestically produced intermediate goods. Since the relative price of intermediate goods enters the marginal co ...
Poland`s policy mix: fiscal or monetary leadership?
... The relationship between the fiscal and monetary authorities in Poland in recent years appears to be broadly consistent with a leader-follower model. The fiscal authority (the government) can be viewed as the leader most of the time. The NBP responds to fiscal developments in setting its policy in l ...
... The relationship between the fiscal and monetary authorities in Poland in recent years appears to be broadly consistent with a leader-follower model. The fiscal authority (the government) can be viewed as the leader most of the time. The NBP responds to fiscal developments in setting its policy in l ...
THE MULTIPLIER EFFECT A FORMULA FOR THE SPENDING
... Suppose, for instance, that the government increases expenditure on a form of government-provided capital, such as roads. Roads are used by private businesses to make deliveries to their customers; an increase in the quantity of roads increases these businesses’ productivity. Hence, when the governm ...
... Suppose, for instance, that the government increases expenditure on a form of government-provided capital, such as roads. Roads are used by private businesses to make deliveries to their customers; an increase in the quantity of roads increases these businesses’ productivity. Hence, when the governm ...
1) The objectives of the Federal Reserve in its conduct of monetary
... If the central bank’s strategy for conducting monetary policy is thought of as a game plan that proceeds in stages, then the game plan can be summarized as follows: (a) The central bank selects its policy goals, then the intermediate targets consistent with achieving its policy goals, then the opera ...
... If the central bank’s strategy for conducting monetary policy is thought of as a game plan that proceeds in stages, then the game plan can be summarized as follows: (a) The central bank selects its policy goals, then the intermediate targets consistent with achieving its policy goals, then the opera ...