Showing 1 - 6 of 6
This note considers an economy with ‘inside money’ that extends over an infinite horizon in the case of certainty. It …
Persistent link: https://www.econbiz.de/10005753152
Money provides liquidity services through a cash-in-advance constraint. The exchange of commodities and assets extends …
Persistent link: https://www.econbiz.de/10005370850
We propose a novel robust test to assess whether an estimated new-Keynesian model is consistent with a unique stable solution, as opposed to multiple equilibria. Our strategy is designed to handle identification failures as well as the misspecification of the relevant propagation mechanisms. We...
Persistent link: https://www.econbiz.de/10011156745
We propose a novel identification-robust test for the null hypothesis that an estimated new-Keynesian model has a reduced form consistent with the unique stable solution against the alternative of sunspot-driven multiple equilibria. Our strategy is designed to handle identification failures as...
Persistent link: https://www.econbiz.de/10011123415
This paper re-examines the empirical evidence on the price puzzle and proposes a new theoretical interpretation. Using structural VARs and two different identification strategies based on zero restrictions and sign restrictions, we find that the positive response of prices to a monetary policy...
Persistent link: https://www.econbiz.de/10005561209
This paper re-examines the empirical evidence on the price puzzle and proposes a new theoretical interpretation. Using structural VARs and two different identification strategies based on zero restrictions and sign restrictions, we find that the positive response of price to a monetary policy...
Persistent link: https://www.econbiz.de/10005126381