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The zero lower bound on nominal interest rates has constrained the Federal Reserve’s setting of the overnight federal funds rate for over three years running. According to many macroeconomic models, such an extended period of being stuck at the zero bound has important implications for the...
Persistent link: https://www.econbiz.de/10010551214
.S. tax schedule and other features of the U.S. economy, we compute the growth and level effects of adopting a revenue …
Persistent link: https://www.econbiz.de/10010702214
Transportation spending often plays a prominent role in government efforts to stimulate the economy during downturns … the economy only slowly over time? This paper reviews the empirical findings in the literature for the United States and …
Persistent link: https://www.econbiz.de/10010576001
Elevated government debt levels in advanced economies have risen rapidly as sovereigns absorbed private sector losses and cyclical deficits blew up in the Global Financial Crisis and subsequent slump. A rush to fiscal austerity followed but its justifications and impacts have been heavily...
Persistent link: https://www.econbiz.de/10011026926
We combine questions from the Michigan Survey about the future path of prices, interest rates, and unemployment to investigate whether U.S. households are aware of the so-called Taylor (1993) rule. For comparison, we perform the same analysis using questions from the Survey of Professional...
Persistent link: https://www.econbiz.de/10010551211
We analyze the declines in government bond yields that followed the announcements of plans by the Federal Reserve and the Bank of England to buy longer-term government debt. Using empirical dynamic term structure models, we decompose these declines into changes in expectations about future...
Persistent link: https://www.econbiz.de/10010551215
Recent U.S. Treasury yields have been constrained to some extent by the zero lower bound (ZLB) on nominal interest rates. In modeling these yields, we compare the performance of a standard affine Gaussian dynamic term structure model (DTSM), which ignores the ZLB, and a shadow-rate DTSM, which...
Persistent link: https://www.econbiz.de/10010728015
(FAVAR) to estimate the effects of Chinese monetary policy on the Chinese economy. A FAVAR approach is particularly well …
Persistent link: https://www.econbiz.de/10010752048
past few decades. However, at the same time, statistical analyses of lagged representations of the economy, such as VARs …
Persistent link: https://www.econbiz.de/10010702129
This paper develops and estimates a macro-finance model that combines a canonical affine no-arbitrage finance specification of the term structure with standard macroeconomic aggregate relationships for output and inflation. From this new empirical formulation, we obtain several important...
Persistent link: https://www.econbiz.de/10010702130