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Since the 2008 global financial crisis, and after decades of relative neglect, the importance of the financial system and its episodic crises as drivers of macroeconomic outcomes has attracted fresh scrutiny from academics, policy makers, and practitioners. Theoretical advances are following a...
Persistent link: https://www.econbiz.de/10011213304
An inflation and stabilization bias may arise as a result of the principal-agent nature of monetary policy. Both depend … performance-orientated compensation packages can achieve both optimal stabilization and the elimination of the inflation bias. …
Persistent link: https://www.econbiz.de/10005067589
A vast empirical literature has documented delayed and persistent effects of monetary policy shocks on output. We show that this finding results from the aggregation of output impulse responses that differ sharply depending on the timing of the shock: When the monetary policy shock takes place...
Persistent link: https://www.econbiz.de/10005789206
nominal and real wage rigidity) and social preferences regarding inflation, employment, and real wages. We also calibrate our …
Persistent link: https://www.econbiz.de/10005124134
Several recent studies imply that the response of national saving to fiscal policy is non-monotonic. In this paper, we use two data sets to search for the circumstances in which such non-monotonic responses arise: one refers to a sample of OECD countries, as in previous studies, and one to a...
Persistent link: https://www.econbiz.de/10005124252
Motivated by policy statements of central bankers, we propose to regard the central banker as a risk manager who aims … at containing inflation and the deviation of output from potential within pre-specified bounds. We develop formal tools … of risk management that may be used to quantify the risks of failing to attain that objective. Risk measures inherently …
Persistent link: https://www.econbiz.de/10005791846
situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation … within pre-specified bounds. We develop formal tools of risk management that may be used to quantify and forecast the risks … of failing to attain that objective. We illustrate the use of these risk measures in practice. First, we show how to …
Persistent link: https://www.econbiz.de/10005123620
inflation and the difficulties of East European central banks in pursuing non-inflationary policies. The main obstacles are the …
Persistent link: https://www.econbiz.de/10005123602
channel through which monetary policy lowers the volatility of inflation and, even more importantly, output. …
Persistent link: https://www.econbiz.de/10005792383
interest rates are associated with significantly lower interest volatility, a lower average rate of inflation, which will be …
Persistent link: https://www.econbiz.de/10005136693