18
result(s)
Average is Good Enough: Average-inflation Targeting and the ELB
Staff Working Paper 2020-31
Robert Amano,
Stefano Gnocchi,
Sylvain Leduc,
Joel Wagner
The Great Recession and current pandemic have focused attention on the constraint on nominal interest rates from the effective lower bound.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E32,
E5,
E52
Multi-Product Pricing: Theory and Evidence from Large Retailers in Israel
Staff Working Paper 2020-12
Marco Bonomo,
Carlos Carvalho,
Oleksiy Kryvtsov,
Sigal Ribon,
Rodolfo Rigato
Standard theories of price adjustment are based on the problem of a single-product firm, and therefore they may not be well suited to analyze price dynamics in the economy with multiproduct firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Market structure and pricing,
Monetary policy
JEL Code(s):
D,
D2,
D21,
D22,
E,
E3,
E31,
E5,
E52,
L,
L1,
L11
The Power of Helicopter Money Revisited: A New Keynesian Perspective
Staff Discussion Paper 2020-1
Thomas J. Carter,
Rhys R. Mendes
We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a “textbook” model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest-bearing reserves.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Credibility,
Economic models,
Fiscal policy,
Inflation targets,
Interest rates,
Monetary policy,
Monetary policy and uncertainty,
Monetary policy framework,
Monetary policy: transmission of
JEL Code(s):
E,
E1,
E12,
E4,
E41,
E43,
E5,
E51,
E52,
E58,
E6,
E61,
E63
Managing GDP Tail Risk
Staff Working Paper 2020-3
Thibaut Duprey,
Alexander Ueberfeldt
Models for macroeconomic forecasts do not usually take into account the risk of a crisis—that is, a sudden large decline in gross domestic product (GDP). However, policy-makers worry about such GDP tail risk because of its large social and economic costs.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Economic models,
Financial stability,
Financial system regulation and policies,
Interest rates,
Monetary policy,
Monetary policy framework
JEL Code(s):
D,
D8,
E,
E4,
E44,
E5,
E52,
E58,
G,
G0,
G01
Social Learning and Monetary Policy at the Effective Lower Bound
Staff Working Paper 2020-2
Jasmina Arifovic,
Alex Grimaud,
Isabelle Salle,
Gauthier Vermandel
This research develops a model in which the economy is directly influenced by how pessimistic or optimistic economic agents are about the future. The agents may hold different views and update them as new economic data become available.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Central bank research,
Credibility,
Economic models,
Monetary policy,
Monetary policy communications
JEL Code(s):
C,
C8,
C82,
E,
E3,
E32,
E5,
E52
Monetary Policy and Government Debt Dynamics Without Commitment
Staff Working Paper 2019-52
Dmitry Matveev
I show that maturity considerations affect the optimal conduct of monetary and fiscal policy during a period of government debt reduction. I consider a New Keynesian model and study a dynamic game of monetary and fiscal policy authorities without commitment, characterizing the incentives that drive the choice of interest rate.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Fiscal policy,
Monetary policy
JEL Code(s):
E,
E5,
E52,
E6,
E62,
E63
Financial Frictions, Durable Goods and Monetary Policy
Staff Working Paper 2019-31
Ugochi Emenogu,
Leo Michelis
Financial frictions affect how much consumers spend on durable and non-durable goods. Borrowers can face both loan-to-value (LTV) constraints and payment-to-income (PTI) constraints.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial system regulation and policies,
Monetary policy
JEL Code(s):
E,
E4,
E44,
E5,
E52
Are Long-Horizon Expectations (De-)Stabilizing? Theory and Experiments
Staff Working Paper 2019-27
George Evans,
Cars Hommes,
Isabelle Salle,
Bruce McGough
Most models in finance assume that agents make trading plans over the infinite future. We consider instead that they are boundedly rational and may only form forecasts over a limited horizon.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Central bank research,
Economic models,
Financial markets
JEL Code(s):
C,
C9,
C92,
D,
D8,
D84,
E
The Effects of Inflation Targeting for Financial Development
Staff Analytical Note 2019-21
Geoffrey R. Dunbar,
Amy (Qijia) Li
The adoption of inflation targeting (IT) by central banks leads to an increase of 10 to 20 percent in measures of financial development, with a lag. We also find evidence that the financial sector benefits of IT adoption were higher for early-adopting central banks.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial institutions,
Inflation targets,
Monetary policy: transmission of
JEL Code(s):
E,
E4,
E44,
E5,
E58