Monetary Policy And Durable Goods PDF Download
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Author | : Alessandro Cantelmo |
Publisher | : International Monetary Fund |
Total Pages | : 81 |
Release | : 2017-12-22 |
Genre | : Business & Economics |
ISBN | : 1484336429 |
Download Monetary Policy and the Relative Price of Durable Goods Book in PDF, ePub and Kindle
In a SVAR model of the US, the response of the relative price of durables to a monetary contraction is either flat or mildly positive. It significantly falls only if narrowly defined as the ratio between new-house and nondurables prices. These findings are rationalized via the estimation of a two-sector New-Keynesian (NK) models. Durables prices are estimated to be as sticky as nondurables, leading to a flat relative price response to a monetary shock. Conversely, house prices are estimated to be almost flexible. Such results survive several robustness checks and a three-sector extension of the NK model. These findings have implications for building two-sector NK models with durable and nondurable goods, and for the conduct of monetary policy.
Author | : Robert B. Barsky |
Publisher | : |
Total Pages | : |
Release | : 2016 |
Genre | : |
ISBN | : |
Download Monetary Policy and Durable Goods Book in PDF, ePub and Kindle
Author | : Christopher J. Erceg |
Publisher | : |
Total Pages | : 42 |
Release | : 2002 |
Genre | : Monetary policy |
ISBN | : |
Download Optimal Monetary Policy with Durable and Non-durable Goods Book in PDF, ePub and Kindle
Author | : Robert B. Barsky |
Publisher | : |
Total Pages | : 0 |
Release | : 2016 |
Genre | : |
ISBN | : |
Download Monetary Policy and Durable Goods Book in PDF, ePub and Kindle
Author | : Alessandro Cantelmo |
Publisher | : International Monetary Fund |
Total Pages | : 33 |
Release | : 2017-03-06 |
Genre | : Business & Economics |
ISBN | : 1475584830 |
Download Sectoral Labor Mobility and Optimal Monetary Policy Book in PDF, ePub and Kindle
In an estimated two-sector New-Keynesian model with durable and nondurable goods, an inverse relationship between sectoral labor mobility and the optimal weight the central bank should attach to durables inflation arises. The combination of nominal wage stickiness and limited labor mobility leads to a nonzero optimal weight for durables inflation even if durables prices were fully flexible. These results survive alternative calibrations and interestrate rules and point toward a non-negligible role of sectoral labor mobility for the conduct of monetary policy.
Author | : Kang Koo Lee |
Publisher | : |
Total Pages | : |
Release | : 2010 |
Genre | : |
ISBN | : |
Download International Monetary Policy Analysis with Durable Goods Book in PDF, ePub and Kindle
The dissertation studies a model of an economy which produces and exports durable goods. It analyzes the optimal monetary policy for such a country. Generally, monetary policy has a bigger economic effect on durable goods relative to non-durable goods because durable goods can be stored and households get utility from the stock of durable goods. This dissertation shows that, in Nash equilibrium, the central bank of a durable goods producing country can control changes of the price level with smaller changes in the monetary policy instrument. In the cooperative equilibrium, the monetary authority of the country which imports non-durable goods and exports durable goods should raise the interest rate by more, relative to the Nash case, in response to a rise in foreign inflation. On the other hand, the monetary authority of the country which imports durable goods and exports non-durable goods should raise the interest rate by less than the other country.
Author | : Ivan Petrella |
Publisher | : |
Total Pages | : |
Release | : 2012 |
Genre | : |
ISBN | : |
Download Monetary Policy with Sectoral Linkages and Durable Goods Book in PDF, ePub and Kindle
Author | : Yongjae Choi |
Publisher | : |
Total Pages | : 204 |
Release | : 2006 |
Genre | : Durable goods, Consumer |
ISBN | : |
Download Three Essays on Business Cycle and Monetary Policy Book in PDF, ePub and Kindle
Author | : Vincent Sterk |
Publisher | : |
Total Pages | : 48 |
Release | : 2015 |
Genre | : Income distribution |
ISBN | : |
Download The Transmission of Monetary Policy Through Redistributions and Durable Purchases Book in PDF, ePub and Kindle
The central explanation for how monetary policy transmits to the real economy relies critically on nominal rigidities, which form the basis of the New Keynesian (NK) framework. This paper studies a different transmission mechanism that operates even in the absence of nominal rigidities. We show that in an OLG setting, standard open market operations (OMO) carried by central banks have important revaluation effects that alter the level and distribution of wealth and the incentives to work and save for retirement. Specifically, expansionary OMO lead households to front-load their purchases of durable goods and work and save more, thus generating a temporary boom in durables, followed by a bust. The mechanism can account for the empirical responses of key macroeconomic variables to monetary policy interventions. Moreover, the model implies that different monetary interventions (e.g., OMO versus helicopter drops) can have different qualitative effects on activity. The mechanism can thus complement the NK paradigm. We study an extension of the model incorporating labor market frictions.
Author | : Tomiyuki Kitamura |
Publisher | : |
Total Pages | : 34 |
Release | : 2016 |
Genre | : Inflation (Finance) |
ISBN | : |
Download Output Comovement and Inflation Dynamics in a Two-sector Model with Durable Goods Book in PDF, ePub and Kindle
In a simple two-sector New Keynesian model, sticky prices generate a counterfactual negative comovement between the output of durable and nondurable goods following a monetary policy shock. We show that heterogeneous factor markets allow any combination of strictly positive price stickiness to generate positive output comovement. Even if the prices of durable goods are flexible, adding sticky information ensures that the output of both sectors moves in the same direction. Furthermore, we find that the combination of sticky information and heterogeneous factor markets produces hump-shaped responses in both sectoral output and inflation, as observed in a vector-autoregression analysis. In contrast to backward indexation to past inflation, which is often assumed in the literature, sticky information leads to a hump-shaped response in the inflation of flexibly priced goods. Finally, the estimated information stickiness through the minimum-distance estimation method suggests that information rigidity is stronger in residential investment than nondurable goods and services.