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The Economic and Demographic Transition, Mortality, and Comparative Development

Cervellati, Matteo; Sunde, Uwe - C.E.P.R. Discussion Papers - 2013

We propose a unified growth theory to investigate the mechanics generating the economic and demographic transition, and the role of mortality differences for comparative development. The framework can replicate the quantitative patterns in historical time series data and in contemporaneous...

Persistent link: https://www.econbiz.de/10011083690

Debt, Deficits and Destabilizing Monetary Policy in Open Economies

Schabert, Andreas; van Wijnbergen, Sweder - C.E.P.R. Discussion Papers - 2006

Blanchard (2005) suggested that active interest rate policy might induce unstable dynamics in highly-indebted economies. We examine this in a dynamic general equilibrium model where Calvo-type price rigidities provide a rationale for inflation stabilization. Unstable dynamics can occur when the...

Persistent link: https://www.econbiz.de/10005792190

Discretion vs. Timeless Perspective under Model-consistent Stabilization Objectives

Petrella, Ivan; Rossi, Raffaele; Santoro, Emiliano - C.E.P.R. Discussion Papers - 2013

This paper contributes to a recent debate about the structural and institutional conditions under which discretion may …

Persistent link: https://www.econbiz.de/10011084222

Mark-Up Fluctuations and Fiscal Policy Stabilization in a Monetary Union

Beetsma, Roel; Jensen, Henrik - C.E.P.R. Discussion Papers - 2003

optimal monetary and fiscal policies under commitment and discretion. With symmetric rigidities, fiscal policy will not be … the case under discretion. We conduct numerical analyses to assess the welfare gains from commitment and from having …

Persistent link: https://www.econbiz.de/10005656165

Implementing Optimal Policy Through Inflation-Forecast Targeting

Svensson, Lars E O; Woodford, Michael - C.E.P.R. Discussion Papers - 2004

We examine to what extent variants of inflation-forecast targeting can avoid stabilization bias, incorporate history-dependence, and achieve determinacy of equilibrium, so as to reproduce a socially optimal equilibrium. We also evaluate these variants in terms of the transparency of the...

Persistent link: https://www.econbiz.de/10005656184

Did Fiscal Policy Makers Know What They Were Doing? Reassessing Fiscal Policy with Real Time Data.

Bernoth, Kerstin; Hughes Hallett, Andrew; Lewis, John - C.E.P.R. Discussion Papers - 2008

Empirical fiscal policy reaction functions based on ex-post data cannot be said to describe fiscal policymakers intentions because they utilise data which did not exist when their decisions were made. A characterisation of what fiscal policy makers were trying to do requires real time data. This...

Persistent link: https://www.econbiz.de/10005666438

Timeless Perspective Vs Discretionary Monetary Policy in Forward-Looking Models

McCallum, Bennett T; Nelson, Edward - C.E.P.R. Discussion Papers - 2001

This Paper reviews the distinction between the timeless perspective and discretionary modes of monetary policymaking, the former representing rule-based policy as recently formalized by Woodford (1999b). In models with forward-looking expectations there is typically a second inefficiency from...

Persistent link: https://www.econbiz.de/10005667101

Political Shocks, Public Debt and the Design of Monetary and Fiscal Institutions

Beetsma, Roel; Bovenberg, A Lans - C.E.P.R. Discussion Papers - 2003

We explore the dynamics of public debt in the presence of political shocks, in the form of shocks to preferences for public spending. Under commitment, optimal stabilization is obtained by combining an inflation target that is contingent on the political shock with a debt target that forces the...

Persistent link: https://www.econbiz.de/10005788888

Inflation Bias with Dynamic Phillips Curves

Kirsanova, Tatiana; Vines, David; Wren-Lewis, Simon - C.E.P.R. Discussion Papers - 2006

We generalise the analysis of inflation bias with dynamic Phillips curves in three respects. First, we examine the discretionary (time consistent) solution in cases where the Phillips curve has both a backward looking and forward-looking component. Second, we show that the commitment (time...

Persistent link: https://www.econbiz.de/10005789164

The Equilibrium Degree of Transparency and Control in Monetary Policy

Faust, Jon; Svensson, Lars E O - C.E.P.R. Discussion Papers - 1999

and discretion. Under commitment, we find that the deliberate choice of sloppy control is far less likely under a standard … central-bank loss function than reported for a less standard loss function by Cukierman and Meltzer. Under discretion, maximum … patient bank with sufficiently low average inflation bias will always choose minimum transparency. Under discretion, both …

Persistent link: https://www.econbiz.de/10005791887