Journal: Journal of Economic Dynamics & Control

Abbreviation

J. econ. dyn. control

Publisher

Elsevier

Journal Volumes

ISSN

0165-1889
1879-1743

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Publications 1 - 10 of 20
  • Preference heterogeneity and optimal monetary policy
    Item type: Journal Article
    Uras, Burak R.; van Buggenum, Hugo (2022)
    Journal of Economic Dynamics & Control
    We study optimal policy design in a monetary model with heterogeneous preferences. In the model, financial markets are incomplete and households are heterogeneous with respect to their current consumption preferences and discount factors. The government controls the supply of money (liquid) and nominal bonds (illiquid), and households make optimal portfolio choices. We uncover that the two types of preference heterogeneity have distinct distributional consequences and different implications for the optimal monetary policy. While the heterogeneity in current consumption preferences pushes the economy towards a zero lower bound (ZLB) associated with nominal interest rates, the heterogeneity in discount factors moves the economy away from the ZLB. We characterize the optimal policy design and quantify the welfare losses associated with a binding ZLB - and thus also the potential welfare benefits of being able to implement negative interest rates.
  • Inflation forecast contracts
    Item type: Journal Article
    Gersbach, Hans; Hahn, Volker (2014)
    Journal of Economic Dynamics & Control
  • Hierarchical growth: Basic and applied research
    Item type: Journal Article
    Gersbach, Hans; Sorger, Gerhard; Amon, Christian (2018)
    Journal of Economic Dynamics & Control
  • Versatile forward guidance: escaping or switching?
    Item type: Journal Article
    Gersbach, Hans; Liu, Yulin; Tischhauser, Martin (2021)
    Journal of Economic Dynamics & Control
    We examine forward guidance when an economy faces negative natural real interest rates and subsequent supply shocks. We introduce two versatile designs: escaping and switching. In the former, the central bank escapes low interest-rate commitment when inflation reaches a self-chosen threshold. In the latter, the central bank can switch from interest-rate forecasts to inflation forecasts any time. Central bankers are scrupulous and face intrinsic (or extrinsic) costs when they deviate from their policy announcements in the future. We show that switching forward guidance is preferable over escaping forward guidance if and only if negative real interest rate shocks are moderate. Furthermore, with the polynomial chaos expansion method and Sobol’ Indices, we identify the decisive parameters and show that our findings are globally robust to parameter uncertainty. © 2021 Elsevier B.V.
  • From structural assumptions to a link between assets and interest rates
    Item type: Journal Article
    Reiss, Oliver; Schoenmakers, John; Schweizer, Martin (2007)
    Journal of Economic Dynamics & Control
  • On the initialization of adaptive learning in macroeconomic models
    Item type: Journal Article
    Berardi, Michele; Galimberti, Jaqueson K. (2017)
    Journal of Economic Dynamics & Control
  • An approximation of the distribution of learning estimates in macroeconomic models
    Item type: Journal Article
    Kingeski Galimberti, Jaqueson (2019)
    Journal of Economic Dynamics & Control
  • Credit chains and bankruptcy propagation in production networks
    Item type: Conference Paper
    Battiston, Stefano; Gatti, Domenico Delli; Gallegati, Mauro; et al. (2007)
    Journal of Economic Dynamics & Control
  • Search, unemployment, and age
    Item type: Journal Article
    Hahn, Volker (2009)
    Journal of Economic Dynamics & Control
  • Does Tax Competition Really Maximize Growth?
    Item type: Journal Article
    Köthenbürger, Marko; Lockwood, Ben (2010)
    Journal of Economic Dynamics & Control
Publications 1 - 10 of 20