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We propose a theory of monetary policy and macroprudential interventions in financial markets. We focus on economies … externalities. Finally, we provide a number of applications which illustrate the relevance of our theory …
Persistent link: https://www.econbiz.de/10012459349
We propose a theory of monetary policy and macroprudential interventions in financial markets. We focus on economies … externalities. Finally, we provide a number of applications which illustrate the relevance of our theory …
Persistent link: https://www.econbiz.de/10013077948
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We study the effects of positive steady-state inflation in New Keynesian models subject to the zero bound on interest rates. We derive the utility-based welfare loss function taking into account the effects of positive steady-state inflation and show that steady-state inflation affects welfare...
Persistent link: https://www.econbiz.de/10012462562