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Forward Guidance in a Simple Model with a Zero Lower Bound

Illing, Gerhard; Siemsen, Thomas - CESifo - 2014

the role of long-run and short-run price stickiness under discretion and commitment in a straightforward and intuitive way …. Despite the impact of price rigidity on welfare being non-linear, losses under discretion are lowest with perfectly flexible … when a commitment to hold nominal rates at zero for an extended period is optimal. We then introduce government spending …

Persistent link: https://www.econbiz.de/10010877957

Structural Distortions and Decentralized Fiscal Policies in EMU

Beetsma, Roel; Bovenberg, Lans - CESifo - 2001

The combination of discretionary monetary policy, labor-market distortions and nominal wage rigidity yields an inflation bias as monetary policy tries to exploit nominal wage contracts to address labour-market distortions Although an inflation target eliminates this inflation bias, it creates a...

Persistent link: https://www.econbiz.de/10005765964

Too many Cooks? Committees in Monetary Policy

Berger, Helge; Nitsch, Volker - CESifo - 2008

How many people should decide about monetary policy? In this paper, we take an empirical perspective on this issue, analyzing the relationship between the number of monetary policy decision-makers and monetary policy outcomes. Using a new data set that characterizes Monetary Policy Committees...

Persistent link: https://www.econbiz.de/10005766195

Central Bank Boards around the World: Why does Membership Size Differ?

Berger, Helge; Nitsch, Volker; Lybek, Tonny - CESifo - 2007

This paper analyzes empirically differences in the size of central bank boards across countries. Defining a board as the body that changes monetary instruments to achieve a specified target, we discuss the possible determinants of a board’s size. The empirical relevance of these factors is...

Persistent link: https://www.econbiz.de/10005181616

Legal Institutions, Innovation and Growth

Anderlini, Luca; Felli, Leonardo; Immordino, Giovanni; … - CESifo - 2011

welfare, amount of innovation and output growth at intermediate stages of technological development - periods when legal … change is needed. The rigid system is preferable at early stages of technological development, when (lack of) commitment …

Persistent link: https://www.econbiz.de/10009150639

Strategic Interactions between Fiscal and Monetary Authorities in a Multi-Country New-Keynesian Model of a Monetary Union

Michalak, Tomasz; Engwerda, Jacob; Plasmans, Joseph - CESifo - 2009

In this paper we consider a number of key issues related to the policy coordination in a monetary union that has been recently discussed in the literature. To this end we propose a multi-country New-Keynesian model of a monetary union cast in the framework of linear quadratic differential games....

Persistent link: https://www.econbiz.de/10005405711

Sovereign Default Risk and Banks in a Monetary Union

Uhlig, Harald - CESifo - 2013

This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank, and that their sovereign partially backs up any...

Persistent link: https://www.econbiz.de/10010877795

Goals and Rules in Central Bank Design

Walsh, Carl - CESifo - 2015

Beginning with the Reserve Bank of New Zealand Act of 1989, central banking reforms have focused on assigning clear goals for which monetary policy authorities can be held accountable. Inflation targeting regimes provide examples of such goal-based policy frameworks. An alternative approach,...

Persistent link: https://www.econbiz.de/10011242154

Strategic Supply Function Competition with Private Information

Vives, Xavier - CESifo - 2009

distortionary market power above full information levels and welfare losses which can be counteracted by subsidies. As the market … welfare losses is 1/ n2 . The results extend to demand schedule competition and a range of applications in product and …

Persistent link: https://www.econbiz.de/10008534061

A Role Model for China? Exchange Rate Flexibility and Monetary Policy in Japan

Schnabl, Gunther; Danne, Christian - CESifo - 2007

Few papers have tried to project how Chinese monetary policy will behave under flexible exchange rates. As Japan provides an important role model for China, this paper studies the role of the yen/dollar exchange rate for Japanese monetary policy after the shift of Japan from a fixed to a...

Persistent link: https://www.econbiz.de/10005405989