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Global Forces and Monetary Policy Effectiveness

Boivin, Jean; Giannoni, Marc P. - National Bureau of Economic Research (NBER) - 2008

In this paper, we quantify the changes in the relationship between international forces and many key US macroeconomic variables over the 1984-2005 period, and analyze changes in the monetary policy transmission mechanism. We do so by estimating a Factor-Augmented VAR on a large set of US and...

Persistent link: https://www.econbiz.de/10005050455

Accounting for Post-Crisis Inflation and Employment: A Retro Analysis

Uhlig, Harald; Fratto, Chiara - National Bureau of Economic Research (NBER) - 2014

What accounts for inflation after 2008? We use the prominent pre-crisis Smets-Wouters (2007) model to address this … question. We find that due to price markup shocks alone inflation would have been 1% higher than observed and 0.5% higher that … responsible for the slow recovery of employment, though not for the initial drop. Monetary policy shocks predict an inflation rate …

Persistent link: https://www.econbiz.de/10011096565

The Macroeconomic Effects of Interest on Reserves

Ireland, Peter - National Bureau of Economic Research (NBER) - 2012

interest on reserves. While their effects on output and inflation are small, these policies require major adjustments in the …

Persistent link: https://www.econbiz.de/10011262796

Is Increased Price Flexibility Stabilizing? Redux

Eggertsson, Gauti B.; Bhattarai, Saroj; Schoenle, Raphael - National Bureau of Economic Research (NBER) - 2014

demand shocks if monetary policy does not respond strongly to inflation. More flexible prices often reduce welfare, even …

Persistent link: https://www.econbiz.de/10010739729

The Making Of A Great Contraction With A Liquidity Trap and A Jobless Recovery

Schmitt-Grohé, Stephanie Schmitt-Grohe; Uribe, Martín - National Bureau of Economic Research (NBER) - 2012

The great contraction of 2008 pushed the U.S. economy into a protracted liquidity trap (i.e., a long period with zero nominal interest rates and inflationary expectations below target). In addition, the recovery was jobless (i.e., output growth recovered but unemployment lingered). This paper...

Persistent link: https://www.econbiz.de/10010969402

Dynamic Debt Deleveraging and Optimal Monetary Policy

Benigno, Pierpaolo; Eggertsson, Gauti B.; Romei, Federica - National Bureau of Economic Research (NBER) - 2014

shortening the duration of the crisis and a binding zero bound. Inflation should be front loaded. Fiscal-policy multipliers can …

Persistent link: https://www.econbiz.de/10010950697

A Model of Secular Stagnation

Eggertsson, Gauti B.; Mehrotra, Neil R. - National Bureau of Economic Research (NBER) - 2014

We propose an overlapping generations New Keynesian model in which a permanent (or very persistent) slump is possible without any self-correcting force to full employment. The trigger for the slump is a deleveraging shock, which creates an oversupply of savings. Other forces that work in the...

Persistent link: https://www.econbiz.de/10010950933

Changes in the Federal Reserve's Inflation Target: Causes and Consequences

Ireland, Peter - National Bureau of Economic Research (NBER) - 2006

inflation target. The results indicate that the target rose from 1 1/4 percent in 1959 to over 8 percent in the mid-to-late 1970 … supply-side shocks into more persistent movements in inflation itself, although considerable uncertainty remains about the … true source of shifts in the inflation target. …

Persistent link: https://www.econbiz.de/10005088772

Endogenous Monetary Policy Regime Change

Davig, Troy; Leeper, Eric - National Bureau of Economic Research (NBER) - 2006

This paper makes changes in monetary policy rules (or regimes) endogenous. Changes are triggered when certain endogenous variables cross specified thresholds. Rational expectations equilibria are examined in three models of threshold switching to illustrate that (i) expectations formation...

Persistent link: https://www.econbiz.de/10005089295

Macroeconomic Modeling for Monetary Policy Evaluation

Gali, Jordi; Gertler, Mark - National Bureau of Economic Research (NBER) - 2007

We describe some of the main features of the recent vintage macroeconomic models used for monetary policy evaluation. We point to some of the key differences with respect to the earlier generation of macro models, and highlight the insights for policy that these new frameworks have to offer. Our...

Persistent link: https://www.econbiz.de/10005084740