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A reappraisal of the inflation-unemployment tradeoff

Karanassou, Marika; Sala, Héctor; Snower, Dennis J. - 2002

This paper offers a reappraisal of the inflation-unemployment tradeoff, based on "frictional growth," describing the … able to work themselves out fully. In this context, monetary shocks have a gradual and delayed effect on inflation and … permanent nominal rigidities, and no departure from rational expectations, there is a long-run inflation-unemployment tradeoff. …

Persistent link: https://www.econbiz.de/10010281025

Understanding the Stock Market's Response to Monetary Policy Shocks

Scharler, Johann - 2004

This paper explores whether a limited participation model of the monetary transmission mechanism can account for the observed response of stock market returns to monetary policy shocks. It is found that the model generates responses that broadly match the empirical counterparts, although the...

Persistent link: https://www.econbiz.de/10013370010

The Effect of Capital Requirement Regulation on the Transmission of Monetary Policy: Evidence from Austria

Engler, Philipp; Jokipii, Terhi; Kaltwasser, Pablo Rovira; … - 2005

This paper analyzes the role of bank capitalization on the transmission of monetary policy, using a quarterly dataset for Austrian banks spanning from 1997 to 2003. A substantial understanding of the transmission mechanism in different countries of the euro zone is not only of academic interest,...

Persistent link: https://www.econbiz.de/10013370016

Tell me something I don't already know: Learning in low- and high-inflation settings

Weber, Michael; Candia, Bernardo; Ropele, Tiziano; … - 2023

affects how agents learn from new information. We show that as inflation has risen in developed economies, both households and … firms have become more attentive and informed about inflation, leading them to respond less to exogenously provided … information about inflation and monetary policy. This observation holds for both firms and households. We also study the effects …

Persistent link: https://www.econbiz.de/10014388422

The Chicago Fed DSGE model: Version 2

Campbell, Jeffrey R.; Ferroni, Filippo; Fisher, Jonas D. M. - 2023

wage inflation, the data are measured in a model consistent way, and market-expected interest rates are used to measure the …

Persistent link: https://www.econbiz.de/10014480569

The response of term rates to monetary policy uncertainty

Jordá, Oscar; Salyer, Kevin D. - 2001

This paper shows that greater uncertainty about monetary policy can lead to a decline in nominal interest rates. In the context of a limited participation model, monetary policy uncertainty is modeled as a mean-preserving spread in the distribution for the money growth process. This increase in...

Persistent link: https://www.econbiz.de/10010318595

The announcement effect: Evidence from open market desk data

Jordà, Òscar; Demiralp, Selva; Liu, Holly; Williams, … - 2001

This paper investigates the ability of the Federal Reserve to manipulate the overnight rate without open market operations (which Demiralp and Jorda (2000) term the announcement effect), using high-frequency, open-market-desk data. Using similar data, Hamilton (1997) takes advantage of forecast...

Persistent link: https://www.econbiz.de/10010318605

How the Fed reanimated Wall Street: The low and extended lending rates that revived the big banks

Matthews, Nicola - 2013

Walter Bagehot's putative principles of lending in liquidity crises - to lend freely to solvent banks with good collateral but at penalty rates - have served as a theoretical basis for thinking about the lender of last resort for close to 100 years, while simultaneously providing justification...

Persistent link: https://www.econbiz.de/10010318672

Distributional Effects of Monetary Policy Shocks on Wage and Hours: Evidence from the Czech Labor Market

Junicke, Monika; Matějů, Jakub; Mumtaz, Haroon; … - 2023

We investigate the heterogeneity in the effects of monetary policy shocks on the distribution of wages and hours worked, using unique contract-level data from the Czech labor market and identifying monetary policy shocks using a narrative approach based on market suprises in interest rate...

Persistent link: https://www.econbiz.de/10014547819

Endogenous money: Structuralist and horizontalist

Wray, L. Randall - 2007

While the mainstream long argued that the central bank could use quantitative constraints as a means to controlling the private creation of money, most economists now recognize that the central bank can only set the overnight interest ratewhich has only an indirect impact on the quantity of...

Persistent link: https://www.econbiz.de/10010266639