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Resurrecting the role of real money balance effects

Dorich, José - 2009

inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively …

Persistent link: https://www.econbiz.de/10003933293

Labor Market Participation, Unemployment and Monetary Policy

Campolmi, Alessia; Gnocchi, Stefano - Bank of Canada - 2014

We incorporate a participation decision in a standard New Keynesian model with matching frictions and show that treating the labor force as constant leads to incorrect evaluation of alternative policies. We also show that the presence of a participation margin mitigates the Shimer critique.

Persistent link: https://www.econbiz.de/10010762042

Housework and Fiscal Expansions

Gnocchi, Stefano; Hauser, Daniela; Pappa, Evi - Bank of Canada - 2014

We build an otherwise-standard business cycle model with housework, calibrated consistently with data on time use, in order to discipline consumption-hours complementarity and relate its strength to the size of fiscal multipliers. We show that if substitutability between home and market goods is...

Persistent link: https://www.econbiz.de/10010885042

On the Importance of Sales for Aggregate Price Flexibility

Kryvtsov, Oleksiy; Vincent, Nicolas - Bank of Canada - 2014

Macroeconomists have traditionally ignored the behavior of temporary price markdowns (“sales”) by retailers. Although sales are common in the micro price data, they are assumed to be unrelated to macroeconomic phenomena and generally filtered out. We challenge this view. First, using the...

Persistent link: https://www.econbiz.de/10010960391

Resurrecting the Role of Real Money Balance Effects

Dorich, José - Bank of Canada - 2009

inflation and output dynamics in the United States. In particular, I find that real money balance effects are quantitatively …

Persistent link: https://www.econbiz.de/10005042251

On Inflation and the Persistence of Shocks to Output

Luger, Richard; Kichian, Maral - Bank of Canada - 2001

inflation. The analysis extends Elwood’s (1998) framework by incorporating in the model an inflation-threshold process that can …, depending on the level of inflation: negative shocks are more detrimental when inflation is high, and positive shocks are more … persistent when inflation is low. …

Persistent link: https://www.econbiz.de/10005808321

Price-Level Targeting and Stabilization Policy: A Review

Ambler, Steve - Bank of Canada - 2007

The author surveys recent articles on the costs and benefits of price-level targeting versus inflation targeting … how price-level targeting affects the short-run trade-off between output and inflation variability by influencing … expectations of future inflation. The author looks at the implications of this argument for assigning an objective based on price …

Persistent link: https://www.econbiz.de/10005162379

Price-Level Targeting and Inflation Expectations: Experimental Evidence

Amano, Robert; Engle-Warnick, Jim; Shukayev, Malik - Bank of Canada - 2011

price-level targeting relative to inflation targeting for business cycle stabilization and mitigating the effects of the … the stationary nature of the price level under price-level targeting by observing their inflation forecasting behaviour in … outcomes than inflation targeting. Our main result suggests that participants formulate inflation expectations consistent with …

Persistent link: https://www.econbiz.de/10009326655

Price Level Targeting: What Is the Right Price?

Shukayev, Malik; Ueberfeldt, Alexander - Bank of Canada - 2010

Various papers have suggested that Price-Level targeting is a welfare improving policy relative to Inflation targeting …

Persistent link: https://www.econbiz.de/10008562475

Consumption, Housing Collateral, and the Canadian Business Cycle

Christensen, Ian; Corrigan, Paul; Mendicino, Caterina; … - Bank of Canada - 2009

Using Bayesian methods, we estimate a small open economy model in which consumers face limits to credit determined by the value of their housing stock. The purpose of this paper is to quantify the role of collateralized household debt in the Canadian business cycle. Our findings show that the...

Persistent link: https://www.econbiz.de/10008566348