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Changes in monetary regimes and the identification of monetary policy shocks : narrative evidence from Canada

Champagne, Julien; Sekkel, Rodrigo - 2017

We use narrative evidence along with a novel database of real-time data and forecasts from the Bank of Canada's staff economic projections from 1974 to 2015 to construct a new measure of monetary policy shocks and estimate the effects of monetary policy in Canada. We show that it is crucial to...

Persistent link: https://www.econbiz.de/10011777945

What explains month-end funding pressure in Canada?

Sutherland, Christopher S. - 2017

The Canadian overnight repo market persistently shows signs of latent funding pressure around month-end periods. Both the overnight repo rate and Bank of Canada liquidity provision tend to rise in these windows. This paper proposes three non-mutually exclusive hypotheses to explain this...

Persistent link: https://www.econbiz.de/10011661122

The power of helicopter money revisited : a new Keynesian perspective

Carter, Thomas J.; Mendes, Rhys R. - 2020

We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a "textbook" model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest-bearing reserves. In the textbook model with only...

Persistent link: https://www.econbiz.de/10012159954

Gazing at r-star : a hysteresis perspective

Beaudry, Paul; Kartashova, Katya; Meh, Césaire Assah - 2023 - Last updated: January 12, 2023

Many explanations for the decline in real interest rates over the last 30 years point to the role that population aging or rising income inequality plays in increasing the long-run aggregate demand for assets. Notwithstanding the importance of such factors, the starting point of this paper is to...

Persistent link: https://www.econbiz.de/10013482643

Learning, Endogenous Indexation and Disinflation in the New-Keynesian Model

Wieland, Volker - 2008

This paper introduces adaptive learning and endogenous indexation in the New-Keynesian Phillips curve and studies … adaptive learning lowers the cost of disinflation. This reduction can be exploited by a gradual approach to disinflation. Firms …

Persistent link: https://www.econbiz.de/10012771761

Social Learning and Monetary Policy Rules

Arifovic, Jasmina; Bullard, James B.; Kostyshyna, Olena - 2007

We analyze the effects of social learning in a widely-studied monetary policy context. Social learning might be viewed … as more descriptive of actual learning behavior in complex market economies. Ideas about how best to forecast the economy … this more realistic learning dynamic. A key result from the literature in the version of the model we study is that the …

Persistent link: https://www.econbiz.de/10014052428

Informational Effects of Monetary Policy

Ferrero, Giuseppe - 2015

We analyse a simplified New-Keynesian model with an unobserved aggregate cost-push shock in which firms and the central bank have different information about the shock. We consider a linear policy rule where a pure inflation targeting central bank decides how much to react to the shock given its...

Persistent link: https://www.econbiz.de/10013027983

Central Bank Transparency and Nonlinear Learning Dynamics

Eusepi, Stefano - 2008

Central bank communication plays an important role in shaping market participants' expectations. This paper studies a … shows that agents' learning and the dynamics of the economy are heavily affected by central bank transparency about its … policy rule. A central bank that does not communicate its rule can induce "learning equilibria" in which the economy …

Persistent link: https://www.econbiz.de/10014214926

Central bank transparency and nonlinear learning dynamics

Eusepi, Stefano (contributor) - 2008

Central bank communication plays an important role in shaping market participants’ expectations. This paper studies a … shows that agents’ learning and the dynamics of the economy are heavily affected by central bank transparency about its … policy rule. A central bank that does not communicate its rule can induce “learning equilibria” in which the economy …

Persistent link: https://www.econbiz.de/10003781685

How to escape a liquidity trap with interest rate rules

Duarte, Fernando - 2016

I give necessary and sufficient conditions under which interest-rate feedback rules eliminate aggregate instability by inducing a globally unique optimal equilibrium in a canonical New Keynesian economy with a binding zero lower bound. I consider a central bank that initially keeps interest...

Persistent link: https://www.econbiz.de/10011477354