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Monetary and fiscal policy interactions in a New Keynesian model with capital accumulation and non-Ricardian consumers

Leith, Campbell; von Thadden, Leopold - 2006

This paper develops a small New Keynesian model with capital accumulation and government debt dynamics. The paper discusses the design of simple monetary and fiscal policy rules consistent with determinate equilibrium dynamics in the absence of Ricardian equivalence. Under this assumption,...

Persistent link: https://www.econbiz.de/10011604695

Monetary policy under alternative exchange rate regimes in Central and Eastern Europe

Ziegler, Christina - 2012

Monetary policy in CEE is an important determinant in the wage bargaining process, because trade unions have to predict inflation as one component of future real wages. This paper scrutinizes whether countries in CEE that officially announce an inflation target are tempted to act...

Persistent link: https://www.econbiz.de/10010308235

Managed Floats to Damp Shocks like 1982-5 and 2006-9: Field and Laboratory Evidence for Chinese Interest in a Single World Currency

Pope, Robin; Selten, Reinhard; Kube, Sebastian; von … - 2009

-conflict model of exchange rate determination , and is within an umbrella theory of Pope, namely SKAT, the Stages of Knowledge Ahead … Theory. SKAT allows for risk effects from stages omitted in normal models, including those from (a) difficulties of agents in …

Persistent link: https://www.econbiz.de/10010274185

The damage from clean floats: From an anti-inflationary monetary policy

Pope, Robin; Selten, Reinhard; Kaiser, Johannes; Kube, … - 2007

embeds a new theory of exchange rate determination involving the uncontroversial power of fully cooperating central banks to … totally fix the exchange rate. The new model is within a broader theory that includes risk effects normally excluded, SKAT …, the Stages of Knowledge Ahead Theory. We use SKAT to analyse outliers in our experimental results, and indicate some new …

Persistent link: https://www.econbiz.de/10010274161

Can the exchange rate regime influence corruption?

Popkova, Katherina - 2011

This paper analyses the influence of the exchange rate regime of a country on the level of tolerated corruption with a special focus on the interdependency of monetary and fiscal policies. Using a simple theoretical framework based on Barro-Gordon-Model I compare independent monetary policy with...

Persistent link: https://www.econbiz.de/10010281777

Open mouth operations

Campbell, Jeffrey R.; Weber, Jacob P. - 2018

We examine the standard New Keynesian economy's Ramsey problem written in terms of instrument settings instead of allocations. Its standard formulation makes two instruments available: the path of current and future interest rates, and an "open mouth operation" which selects one of the many...

Persistent link: https://www.econbiz.de/10012030346

Policy rate decisions and unbiased parameter estimation in typical monetary policy rules

Podpiera, Jirí - 2007

Policymakers do not always follow a simple rule for setting policy rates for various reasons and thus their choices are co-driven by a decision to follow a rule or not. Consequently, some observations are censored and cause bias in conventional estimators of typical Taylor rules. To account for...

Persistent link: https://www.econbiz.de/10011604817

On the Welfare Effects of Monetary Policy When Households Try to Keep Up with the Rest of the World

Pierdzioch, Christian; Yener, Serkan - 2004

We develop a dynamic general equilibrium two-economy model in order to analyze the welfare effects of monetary policy in open economies. The model features two distortions: one distortion due to monopolistic competition, and one distortion due to a consumption externality. This consumption...

Persistent link: https://www.econbiz.de/10010260477

Exchange Rate Expectations Redux and Monetary Policy

Pierdzioch, Christian - 2002

This paper uses a dynamic general equilibrium optimizing two-country model to analyze how the formation of exchange rate expectations shapes the effects of monetary policy shocks in open economies. The model implies that the short-run output effects of permanent monetary policy shocks diminish...

Persistent link: https://www.econbiz.de/10010260510

Capital Mobility, Consumption Substitutability, and the Effectiveness of Monetary Policy in Open Economies

Pierdzioch, Christian - 2002

This paper uses a dynamic general equilibrium two-country optimizing model to analyze the consequences of international capital mobility for the effectiveness of monetary policy in open economies. The model shows that the substitutability of goods produced in different countries plays a central...

Persistent link: https://www.econbiz.de/10010260511