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Real interest and inflation rates have been very low in many industrialized countries since the Great Recession. In this paper, a mechanism of low and floating real interest and inflation rates is examined based on the concept a “Nash equilibrium of a Pareto inefficient path” and the law of...
Persistent link: https://www.econbiz.de/10015259162
Real interest and inflation rates have been very low in many industrialized countries since the Great Recession. In this paper, a mechanism of low and floating real interest and inflation rates is examined based on the concept a “Nash equilibrium of a Pareto inefficient path” and the law of...
Persistent link: https://www.econbiz.de/10015262837
Any difference that arises between the level of domestic saving and investment is reflected in the nation's current … account position. Both domestic saving and investment can be sub-divided into private and public sector components, and gaps … lead to higher investment and a drop in saving, the article concludes that public finances must be strengthened …
Persistent link: https://www.econbiz.de/10015228416
propose approaches taken from science (for example, behavioral evolution theory,) that might be useful in explaining the data …
Persistent link: https://www.econbiz.de/10015243385
propose approaches taken from science (for example, behavioral evolution theory,) that might be useful in explaining the data …
Persistent link: https://www.econbiz.de/10015243611
In this paper I provide empirical evidence that uncertainty shocks have strong asymmetric effects on economic activity depending on the phase of the business cycle. In particular, the impulse responses estimated with the local projection method on a smooth-transition model show that in...
Persistent link: https://www.econbiz.de/10015248559
-rate-inelasticity issue than the usual investment adjustment costs. Finally, I show the model's generality by adding wage rigidity and …
Persistent link: https://www.econbiz.de/10015252397
propose approaches taken from science (for example, behavioral evolution theory,) that might be useful in explaining the data …
Persistent link: https://www.econbiz.de/10015244495
substitution effect. A drop in savings in turn causes a fall in capital investment, subsequent output, and real money balances. To … CBDC, the tax on agents' capital spending increases, inducing a decrease in capital investment and an increase in … government bonds in agents' portfolio. Such a policy causes a drop in investment and output. However, there is a transitory …
Persistent link: https://www.econbiz.de/10015222813
scope, 4) to improve the Ledenyov discrete time digital signals theory to precisely characterize the discrete time digital … decisions on the monetary policies, financial stability policies, and b) the commercial/investment banks with the aim to make …
Persistent link: https://www.econbiz.de/10015247824