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The Great Moderation : inventories, shocks or monetary policy?

Förster, Marcel - 2013

This paper presents a New Keynesian DSGE model with inventory holding firms. The model distinguishes between goods and materials, for both production as well as for inventories. The more detailed treatment of inventory holdings offers new insights into the determinants of business cycles before...

Persistent link: https://www.econbiz.de/10010208560

Learning and Judgment Shocks in U.S. Business Cycles

Murray, James - 2011

-war economic volatility within the context of a New Keynesian model. Agents form expectations using constant gain learning then …

Persistent link: https://www.econbiz.de/10013128990

Heterogeneity in individual expectations, sentiment, and constant-gain learning

Cole, Stephen J.; Milani, Fabio - 2020

The adaptive learning approach has been fruitfully employed to model the formation of aggregate expectations at the … macroeconomic level, as an alternative to rational expectations. This paper uses adaptive learning to understand, instead, the … sentiment, defined as the degrees of excess optimism and pessimism that cannot be justified by the near-rational learning model …

Persistent link: https://www.econbiz.de/10012226634

Perceived uncertainty shocks, excess optimism-pessimism, and learning in the business cycle

Chatterjee, Pratiti; Milani, Fabio - 2020

What are the effects of beliefs, sentiment, and uncertainty, over the business cycle? To answer this question, we develop a behavioral New Keynesian macroeconomic model, in which we relax the assumption of rational expectations. Agents are, instead, boundedly rational: they have a...

Persistent link: https://www.econbiz.de/10012294890

Inflation Responses to Commodity Price Shocks - How and Why Do Countries Differ?

Ustyugova, Yulia - 2012

This paper relates the inflationary impact of commodity price shocks across countries to a broad range of structural characteristics and policy frameworks over the period 2001-2010, using several approaches. The analysis suggests that economies with higher food shares in CPI baskets, fuel...

Persistent link: https://www.econbiz.de/10013098581

A Theory of Price Adjustment Under Loss Aversion

Ahrens, Steffen - 2014

We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect theory, the consumers' perceived utility losses from price increases are weighted more heavily than the perceived utility gains from price decreases of equal magnitude. Price...

Persistent link: https://www.econbiz.de/10013054582

It's Never Different : Fiscal Policy Shocks and Inflation

Cevik, Serhan; Miryugin, Fedor - 2023

This paper investigates the impact of fiscal shocks on inflation, using a large panel of 139 countries over the period 1970–2021. First, both headline and core measures of inflation increase in response to expansionary shifts in the fiscal policy stance. Second, we split the sample and observe...

Persistent link: https://www.econbiz.de/10014354525

How Persistent are Climate-Related Price Shocks? Implications for Monetary Policy

Kabundi, Alain; Mlachila, Montfort; Yao, Jiaxiong - 2022

Climate change is likely to lead to more frequent and more severe supply and demand shocks that will present a challenge to monetary policy formulation. The main objective of the paper is to investigate how climate shocks affect consumer prices in a broad range of countries over a long period...

Persistent link: https://www.econbiz.de/10014238517

Pass-Through of Cost-Push Shocks

Gödl-Hanisch, Isabel; Menkhoff, Manuel - 2023

This paper examines the pass-through of cost-push shocks to customers at a granular level. Using unique firm-level survey data, we document five facts about pass-through across firms, sectors, and over time. We highlight a new channel relevant for pass-through: beliefs about the expected...

Persistent link: https://www.econbiz.de/10014347021

A theory of price adjustment under loss aversion

Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J. - 2014

Persistent link: https://www.econbiz.de/10010350414