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Assessing the impact of demand shocks on the US term premium

Barnett, Russell; Zmitrowicz, Konrad - 2018

During and after the Great Recession of 2008-09, conventional monetary policy in the United States and many other advanced economies was constrained by the effective lower bound (ELB) on nominal interest rates. Several central banks implemented large-scale asset purchase (LSAP) programs, more...

Persistent link: https://www.econbiz.de/10011873794

Monetary policy uncertainty and firm dynamics

Fasani, Stefano; Mumtaz, Haroon; Rossi, Lorenza - 2020

This paper uses a FAVAR model with external instruments to show that the policy uncertainty shocks are recessionary and are associated with an increase in the exit of firms and a decrease in entry and in the stock price with total factor productivity rising in the medium run. To explain this...

Persistent link: https://www.econbiz.de/10012243253

Myth and Reality in the Great Inflation Debate : Supply Shocks and Wealth Effects in a Multipolar World Economy

Ferguson, Thomas; Storm, Servaas - 2023

This paper critically evaluates debates over the causes of U.S. inflation. We first show that claims that the Biden … stimulus was the major cause of inflation are mistaken: the key data series – stimulus spending and inflation – move …-reaching effects on labor markets.We conclude that while all four factors played roles in bringing on and sustaining inflation, they …

Persistent link: https://www.econbiz.de/10014264021

How does monetary policy affect income and wealth inequality? : evidence from quantitative easing in the euro area

Lenza, Michele; Slacalek, Jirka - 2018

This paper studies the effects of quantitative easing on income and wealth of individual euro area households. The aggregate effects of quantitative easing are estimated in a multi-country VAR model of the four largest euro area countries, in which key variables affecting household income and...

Persistent link: https://www.econbiz.de/10011921470

The impact of quantitative easing on bank loan supply and monetary policy implementation in the euro area

Horst, Maximilian; Neyer, Ulrike - 2019

In March 2015, the Eurosystem launched its QE-programme. The asset purchases induced a rapid and strong increase in excess reserves, implying a structural liquidity surplus in the euro area banking sector. Against this background, the first part of this paper analyses the Eurosystem's liquidity...

Persistent link: https://www.econbiz.de/10012099037

What is the Importance of Monetary and Fiscal Shocks in Explaining US Macroeconomic Fluctuations?

Rossi, Barbara; Zubairy, Sarah - 2011

This paper analyzes the importance of monetary and fiscal policy shocks in explaining US macroeconomic fluctuations, and establishes new stylized facts. The novelty of our empirical analysis is that we jointly consider both monetary and fiscal policy, whereas the existing literature only focuses...

Persistent link: https://www.econbiz.de/10014186718

The Long-Run Real Effects of Monetary Policy : Keynesian Predictions from a Neoclassical Model

Espinosa-Vega, Marco A.; Russell, Steven H. - 2014

in both the inflation rate and the level (but not the growth rate) of output. We also describe conditions under which the … effects of these policies on real interest rates and output can be large relative to their effects on the rate of inflation … minimizes the change in the inflation rate necessary to achieve a given change in the level of output …

Persistent link: https://www.econbiz.de/10014048520

Monetary Policy Shock and Financial Market Responses : An Empirical Study of Exchange Rate, Gold and International Equity Market

Jiang, Yucheng - 2017

as UIP(Uncovered Interest Rate Parity), Gold price as a prediction of inflation and international transmission of …

Persistent link: https://www.econbiz.de/10012952188

Chapter 2. Macroeconomic Shocks and Their Propagation

Ramey, V.A. - In: Handbook of macroeconomics : volume 2, v. 2A-2B SET, (pp. 71-162). 2016

This chapter reviews and synthesizes our current understanding of the shocks that drive economic fluctuations. The chapter begins with an illustration of the problem of identifying macroeconomic shocks, followed by an overview of the many recent innovations for identifying shocks. It then...

Persistent link: https://www.econbiz.de/10014024291

The federal reserve's implicit inflation target and macroeconomic dynamics : a SVAR analysis

Mumtaz, Haroon; Theodoridis, Konstantinos - 2018

This paper identifies shocks to the Federal ReserveÕs inflation target as VAR innovations that make the largest … contribution to future movements in long-horizon inflation expectations. The effectiveness of this scheme is documented via Monte … behind the increase in inflation during the pre-1980 period and are an important driver of the decline in long-term interest …

Persistent link: https://www.econbiz.de/10011867818