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Commitment without reputation : renegotiation-proof contracts under asymmetric information

Gerratana, Emanuele; Koçkesen, Levent - 2013

used as commitment devices when it is impossible to commit not to renegotiate them. We characterize renegotiation …

Persistent link: https://www.econbiz.de/10010222351

The New Keynesian Phillips Curve and staggered price and wage determination in a model with firm-specific labor

Carlsson, Mikael; Westermark, Andreas - 2009 - rev.

We develop a DSGE model with firm-specific labor where firm-level wage bargaining and price setting are subject to …

Persistent link: https://www.econbiz.de/10010127998

Allies or Commitment Devices? A Model of Appointments to the Federal Reserve

Schnakenberg, Keith E. - 2017

We present a model of executive-legislative bargaining over appointments to independent central banks in the face of an … commitment problems that arise in monetary policy. In the other, politicians prefer to appoint allies, and appointments are well …

Persistent link: https://www.econbiz.de/10012974160

Strategic debt in a monetary economy

Althanns, Markus; Buggenum, Hugo van - 2025

Producers can leverage their bargaining power vis-'a-vis consumers by entering bargaining with debt. We discover novel … constraints within matches. While the fiscal authority can fully eliminate strategic debt through taxation, in its absence … show that producers can leverage their bargaining power even more effectively with contracts different from debt. …

Persistent link: https://www.econbiz.de/10015405465

The Role of Expectations in Monetary Policy

Demertzis, Maria - 2011

credible commitment. However, although always in favour of reaping the benefits of having committed, Central Banks worry about …

Persistent link: https://www.econbiz.de/10014055507

Inflation Targeting and Welfare : Reconsidering the Barro-Gordon Model When Perceived Inflation and Inflation Expectations Are Interrelated

Sell, Friedrich - 2022

This paper aims at assessing the impact of inflation targeting on actual inflation when considering inflation perceptions together with interrelated inflation expectations, modifying the seminal papers of Barro and Gordon (1983a and 1983b). The modeling of inflation perceptions and of inflation...

Persistent link: https://www.econbiz.de/10014080275

Imperfect Information, Heterogeneous Demand Shocks, and Inflation Dynamics

Okuda, Tatsushi; Tsuruga, Tomohiro; Zanetti, Francesco - 2021

Using sector-level survey data for the universe of Japanese firms, we establish the positive co-movement in the firm’s expectations about aggregate and sector-specific demand shocks. We show that a simple model with imperfect information on the current aggregate and sector-specific components...

Persistent link: https://www.econbiz.de/10013241100

Monetary Policy Obeying the Taylor Principle Turns Prices into Strategic Substitutes

Cornand, Camille - 2018

Monetary policy affects the degree of strategic complementarity in firms' pricing decisions if it responds to the aggregate price level. In normal times, when monopolistic competitive firms increase their prices, the central bank raises interest rates, which lowers consumption demand and creates...

Persistent link: https://www.econbiz.de/10012922618

Imperfect Bank Competition, Borrower Adverse Selection, and the Transmission of Monetary Policy

Cantillo, Miguel - 2023

This paper studies bank competition with borrower adverse selection. In the model, expected non-performing loan costs are high when credit is granted in booms, when risk free rates are low, or when competition is strong. I prove that full competition is suboptimal due to this last effect; that...

Persistent link: https://www.econbiz.de/10014355959

Central banks, trade unions and reputation – is there room for an expansionist manoeuvre in the European Union?

Pusch, Toralf; Heise, Arne - 2008

It is now a few years since the introduction of the common currency, and Europe is still experiencing high unemployment. The conventional logic attributes this problem to strong trade unions and other flaws in the labour market. This article takes a different approach. Using a game theoretic...

Persistent link: https://www.econbiz.de/10008663759