Good news about news shocks

Viktoria C. E. Langer

Extending and modifying the canonical New Keynesian (NK) model, this study provides a novel approach to examine the impact of anticipated shocks called "news shocks" on business cycles. The analysis shows that news shocks are less stressful for an economy than commonly assumed. The main results are as follows: (1) triggering lower economic fluctuations than unanticipated shocks of equal size news shocks behave in a welfare-enhancing manner, and (2) purely history-dependent monetary policy rules do not constitute an effective monetary instrument to keep welfare losses to a minimum.

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Year of publication:	2015 ; Version: June 2015
Authors:	Langer, Viktoria C. E.
Publisher:	Hamburg : Univ., Fac. Economics and Social Science, Chair for Economic Policy
Subject:	Anticipated shock \| welfare \| business cycle \| monetary policy \| Schock \| Shock \| Geldpolitik \| Monetary policy \| Konjunktur \| Business cycle \| Theorie \| Theory

Extent:	Online-Ressource (8 S.)
Series:	Hamburg contemporary economic discussions. - Hamburg : [Verlag nicht ermittelbar], ISSN 1865-7133, ZDB-ID 2409805-X. - Vol. 53
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
ISBN:	978-3-942820-21-9 ; 978-3-942820-20-2
Other identifiers:	hdl:10419/149371 [Handle]
Classification:	E32 - Business Fluctuations; Cycles ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011373568