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The usefulness of P* measures for Japan and Germany

Kole, Linda S.; Leahy, Michael P. - Federal Reserve Board (Board of Governors of the … - 1991

This paper develops measures of long-run equilibrium price levels (P*) for Japan and Germany following the approach … in the U.S. case because the velocities of the broad monetary aggregates (M2+CDs in Japan and M3 in Germany) exhibit … money demand to construct measures of equilibrium velocity and P for Japan and Germany. We then assess the explanatory power …

Persistent link: https://www.econbiz.de/10005368454

The benefits of price stability

Bernanke, Ben S. - Federal Reserve Board (Board of Governors of the … - 2006

a speech at the Center for Economic Policy Studies and on the occasion of the Seventy-Fifth Anniversary of the Woodrow Wilson School of Public and International Affairs, Princeton University, Princeton, New Jersey

Persistent link: https://www.econbiz.de/10010725142

Commodity prices, the economic outlook, and monetary policy : a speech at the Economic Club of New York, New York, New York, April 11, 2011

Yellen, Janet L. - Federal Reserve Board (Board of Governors of the … - 2011

remarks at the Economic Club of New York, New York, New York, April 11, 2011

Persistent link: https://www.econbiz.de/10010729284

Optimal monetary policy with distinct core and headline inflation rates

Bodenstein, Martin; Erceg, Christopher J.; Guerrieri, Luca - Federal Reserve Board (Board of Governors of the … - 2008

In a stylized DSGE model with an energy sector, the optimal policy response to an adverse energy supply shock implies a rise in core inflation, a larger rise in headline inflation, and a decline in wage inflation. The optimal policy is well-approximated by policies that stabilize the output gap,...

Persistent link: https://www.econbiz.de/10005368420

Exact utilities under alternative monetary rules in a simple macro model with optimizing agents

Henderson, Dale W.; Kim, Jinill - Federal Reserve Board (Board of Governors of the … - 1999

We construct an optimizing-agent model of a closed economy which is simple enough that we can use it to make exact utility calculations. There is a stabilization problem because there are one-period nominal contracts for wages, or prices, or both and shocks that are unknown at the time when...

Persistent link: https://www.econbiz.de/10005368489

Comovements in aggregate and relative prices: some evidence on neutrality

Pauls, B. Dianne - Federal Reserve Board (Board of Governors of the … - 1986

This paper develops an alternative test of the neutrality of anticipated monetary policy. A multi-good equilibrium model along the lines of Barro and Hercowitz is used to derive a neutrality proposition for anticipated movements in the aggregate price level and to demonstrate econometrically its...

Persistent link: https://www.econbiz.de/10005498851

Ramsey monetary policy and international relative prices

Faia, Ester; Monacelli, Tommaso - Federal Reserve Board (Board of Governors of the … - 2004

We analyze welfare maximizing monetary policy in a dynamic two-country model with price stickiness and imperfect competition. In this context, a typical terms of trade externality affects policy interaction between independent monetary authorities. Unlike the existing literature, we remain...

Persistent link: https://www.econbiz.de/10005498879

Monetary policy rules and the indicator properties of asset prices

Fuhrer, Jeff; Moore, George - Federal Reserve Board (Board of Governors of the … - 1989

Persistent link: https://www.econbiz.de/10005514196

Price stability and monetary policy effectiveness when nominal interest rates are bounded at zero

Orphanides, Athanasios; Wieland, Volker - Federal Reserve Board (Board of Governors of the … - 1998

This paper employs stochastic simulations of a small structural rational expectations model to investigate the consequences of the zero bound constraint on nominal interest rates. We find that if the economy is subject to stochastic shocks similar in magnitude to those experienced in the U.S....

Persistent link: https://www.econbiz.de/10005393669

Does monetary policy affect stock prices and Treasury yields? An error correction and simultaneous equation approach

Durham, J. Benson - Federal Reserve Board (Board of Governors of the … - 2003

This study pursues two addenda to the practitioner and academic on the effect of monetary policy on asset prices. First, this paper applies cointegration theory, and, second, relaxes the stringent assumption in the literature that changes in 10-year Treasury yields, stock returns, and changes in...

Persistent link: https://www.econbiz.de/10005393989