Showing 1 - 10 of 77
Exploiting a specific sunspot equilibrium in a standard forward-looking New Keynesian model, we present an example of a …
Persistent link: https://www.econbiz.de/10011604135
The increasing importance of global supply chains has prompted the use of analytical tools based on trade in value added – instead of traditional measures in gross value. We use this analytical framework to develop indicators that identify hubs and spokes in international supply chains. Using...
Persistent link: https://www.econbiz.de/10011605715
The increasing importance of global supply chains has prompted the use of analytical tools based on trade in value added – instead of traditional measures in gross value. We use this analytical framework to develop indicators that identify hubs and spokes in international supply chains. Using...
Persistent link: https://www.econbiz.de/10013055305
A financial stress index for the United States is introduced – an index that was used in real time by the staff of the Federal Reserve Board to monitor the financial crisis of 2008-9 – and the interaction with real activity, inflation and monetary policy is demonstrated using a richly...
Persistent link: https://www.econbiz.de/10011605773
We develop a theoretical model that features a business cycle-dependent relation between out- put, price inflation and inflation expectations, augmenting the model by Svensson (1997) with a nonlinear Phillips curve that reflects the rationale underlying the capacity constraint theory (Macklem...
Persistent link: https://www.econbiz.de/10011606049
We build a balance sheet-based model to capture run risk, i.e., a reduced potential to raise capital from liquidity buffers under stress, driven by depositor scrutiny and further fuelled by fire sales in response to withdrawals. The setup is inspired by the Silicon Valley Bank (SVB) meltdown in...
Persistent link: https://www.econbiz.de/10015199506
rules affect the conditions for convergence of adaptive learning towards rational expectations equilibrium. Results are …
Persistent link: https://www.econbiz.de/10011604166
In this paper, we present a model-based method for identifying fiscal closure rules in stochastic macroeconomic models. The methodology is based on the stability analysis of the model at hand, with an endogenous derivation of a reaction on the part of the fiscal authority to state variables in...
Persistent link: https://www.econbiz.de/10011604202
rate) in which equilibrium selection is not conditioned on a sunspot variable. Instead, large enough shocks initiate …
Persistent link: https://www.econbiz.de/10011604285
A number of authors have attempted to test whether the U.S. economy is in a determinate or an indeterminate equilibrium … provide examples of two economic models. Model 1 displays an indeterminate equilibrium, driven by sunspots. Model 2 displays a … determinate equilibrium driven by fundamentals. Given assumptions about the shock distribution of model 2, it is possible to find …
Persistent link: https://www.econbiz.de/10011604323