This paper follows up on recent studies of the Eurozone interest rate pass-through. Using a generalized empirical approach that allows for a variety of different specifications of the pass-through, including asymmetric adjustment, the role of interest rate expectations, proxied by EURIBOR...

This paper presents evidence on the industry effects of bank lending in Germany and asks whether bank lending to single industries depends on industry-specific bank credit demand or on monetary policy as determinant of bank credit supply. To this end, we estimate individual bank lending...

This paper explores how decentralized, national fiscal policies interact with a common monetary policy in a monetary union. We show that fiscal policy plays a more important role in stabilizing country-specific shocks than with national monetary policies. Whereas monetary unification with an...

This paper introduces a zero lower bound constraint on the nominal interest rate in a financial accelerator model with nominal and real rigidities. We .rst analyze the implicationsfor aggregate dynamics of binding the zero lower bound for shocks that depress the nominalinterest rate. We include...

Empirical studies reject uncovered interest parity. Experimental and survey data studies reject rational expectations and find evidence of adaptive, regressive, bandwagon and distributed lag expectations. In this paper we investigate how these two findings are related. We show that uncovered...

Georg Simmel (1858-1918) veröffentlichte 1899 und1907 seine Philosophie des Geldes. Die Rezeption in der amerikanischen Literatur betont den Ökonomisch-Geldtheoretischen Aspekt dieses Beitrages und sucht ihn in der österreichischen Tradition der Volkswirtschaftslehre zu verankern. Aus der...

The label “Keynes-Negishi equilibria” is attached here to equilibria in a monetary economy with imperfectly competitive product and labor markets where business firms and labor unions hold demand perceptions with kinks - as posited in Negishi’s 1979 book Microeconomic Foundations of...

This paper extends a New Keynesian model with features of endogenous growth. This allows temporary shocks to have persistent effects, which in turn feeds back to short run demand and thus changes both the short and medium run response of the economy. The first major finding is that the model...

We investigate the interest rate pass-through in the four Common Monetary Area (CMA) countries of the South African Customs Union (SACU). We employ an empirical pass-through model that allows for thresholds, asymmetric adjustment, and structural changes. We show that CMA bank lending markets...

Studies on central bank reaction functions find that central banks only caring about inflation stability, like the ECB, seem to follow a standard Taylor rule in the sense that the interest rate reacts significantly to variations in the output gap. We explain this result by claiming that the...