What are the effects of a higher central bank inflation target on the burden of real public debt? Several recent proposals have suggested that even a moderate increase in the inflation target can have a pronounced effect on real public debt. We consider this question in a New Keynesian model...

In this note, we quantify the deterioration of achievable stabilization outcomes when monetary policy operates under imperfect credibility and weak anchoring of long-term expectations. Within a medium-scale Dynamic Stochastic General Equilibrium (DSGE) model, we introduce, through a simple...

We develop a dynamic general equilibrium model for the positive and normative analysis of macroprudential policies. Optimizing financial intermediaries allocate their scarce net worth together with funds raised from saving households across two lending activities, mortgage and corporate lending....

[fre] L’objet de cet article est double. D’une part, il présente le modèle d’équilibre général de la Nouvelle synthèse qui est devenu en peu de temps une véritable référence pour l’analyse macroéconomique (simulations de politiques économiques, prévisions d’inflation,...

L’objet de cet article est double. D’une part, il présente le modèle d’équilibre général de la “Nouvelle Synthèse” qui est devenu en peu de temps une véritable référence pour l’analyse macroéconomique (simulations de politiques économiques, prévisions d’inflation,...

This paper extends the utility-based welfare criterion developed by Woodford (2003) to a model with labour market search. We show how the central banker’s concern for inflation stabilization depends on the average steady-state durations of unemployment and job vacancy.

In this paper, we use the estimated three-region DSGE model GEAR, which pictures Germany, the Euro Area and the Rest of the world and which is used by the Deutsche Bundesbank for policy analysis, to analyze how discretionary fiscal policy in Germany and the rest of EMU affected GDP growth and...