Author: Francesco Furlanetto
Publisher:
ISBN:
Category :
Languages : en
Pages : 94

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Author: Ruoyun Mao
Publisher:
ISBN: 9781082943867
Category : Direct costing
Languages : en
Pages : 185

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Book Description
The dissertation consists of three essays studying the effects of monetary and fiscal policy. The first chapter, ''Policy Uncertainty and Government Spending Effects'' (joint with Shu-Chun Yang), studies government spending multipliers in a low nominal interest rate environment. Using a fully nonlinear New Keynesian model, this chapter shows government spending multipliers can decrease when 1) the initial debt-to-GDP ratio is higher, 2) the tax rate is higher, 3) debt maturity is longer, and 4) monetary policy is more responsive to inflation. When monetary and fiscal policy regimes can switch, policy uncertainty also reduces spending multipliers. If higher inflation induces a rising probability of switching to a regime where monetary policy actively controls inflation and fiscal policy raises future taxes to stabilize government debt, the multipliers can fall much below unity.The second chapter is a joint work with Zhao Han and Xiaohan Ma and studies how dispersed information impacts inflation, inflation expectations, and the Phillips curve by analytically solving a price-setting problem with nominal rigidity and informational frictions. The analytical representations enable us to recover the underlying parameters with data from the Survey of Professional Forecasters (SPF) and quantify the effects of dispersed information. The estimation results show dispersed information plays an important role in generating persistent inflation forecast errors and non-zero nowcast errors, as observed in the SPF data, but the effects of higher-order expectations on the Phillips curve are quantitatively small.The last chapter derives the optimal monetary policy when firms only have limited capacity to process information. The result shows marginal cost of attention is the key to determining the trade-off between the central bank's dual mandates. When the marginal cost is low, monetary policy aiming at stabilizing the output gap attracts attention from the private sector and generates inefficient price dispersion; Increasing the marginal cost of attention can eliminate the trade-off. A comparison between a rule-based policy and a discretionary policy confirms welfare gain from commitment. Firms pay extra attention to the policy signal when it is discretionary, which generates more price dispersion and harms welfare.

Author: Wei Wang
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Author: Jonathan A. Rawls
Publisher:
ISBN:
Category : Expenditures, Public
Languages : en
Pages : 0

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Author: Christopher M. Towe
Publisher: National Library of Canada
ISBN: 9780315206953
Category : Fiscal policy
Languages : en
Pages : 326

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Book Description
The thesis consists of three essays which investigate the relative effectiveness of monetary and fiscal policy.

Author: David B. Gordon
Publisher:
ISBN:
Category : Monetary policy
Languages : en
Pages : 182

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Author: Haytem Troug
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Andrea Fracasso
Publisher:
ISBN:
Category :
Languages : en
Pages : 227

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Book Description
The three essay are concerned with the uncertainty and risks that pervade the economy, influence investors and affect policymakers. The first essay shows that monetary policymakers consider events and contingencies to make decisions, and concludes that short-lived regime switches corrupt the descriptive power of linear Taylor-type rules, although these describe well the contours of the Fed's behaviour. The second essay focuses on the role of global and domestic factors for macroeconomic fluctuations in Brazil. The estimates of a VAR model reveal that global risk aversion is an important determinant of the volatility of Brazilian series and affects the monetary policy transmission channel. The third essay builds on the idea that, contrary to the predictions of IRBC models, the degree of international consumption smoothing is low. After a review of the literature addressing the puzzle, it investigates the relationship between external debt and consumption smoothing in a sample of developing countries.

Author: Mr.Mark P. Taylor
Publisher: International Monetary Fund
ISBN: 1451947038
Category : Business & Economics
Languages : en
Pages : 31

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This paper contains essays on sterilized intervention, on covered interest rate parity, and on chartist analysis in financial markets. Each essay contains a definition, brief survey of the empirical evidence and overall assessment of each topic.

Author: Kyonghoon Kim
Publisher:
ISBN:
Category : Financial crises
Languages : en
Pages : 85

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Book Description