507 research outputs found
Search, money and capital: a neoclassical dichotomy
Recent work has reduced the gap between search-based monetary theory and mainstream macroeconomics by incorporating into the search model some centralized markets as well as some decentralized markets where money is essential. This paper takes a further step towards this integration by introducing labor, capital and neoclassical firms. The resulting framework nests the search-theoretic monetary model and a standard neoclassical growth model as special cases. Perhaps surprisingly, it also exhibits a dichotomy: one can determine the equilibrium path for the value of money independently of the paths of consumption, investment and employment in the centralized market.Monetary theory ; Macroeconomics
Search, Money and Capital: A Neoclassical Dichotomy, Second Version
Recent work has reduced the gap between search-based monetary theory and mainstream macroeconomics by incorporating into the search model some centralized markets as well as some decentralized markets where money is essential. This paper takes a further step towards this integration by introducing labor, capital and neoclassical firms. The resulting framework nests the search-theoretic monetary model and a standard neoclassical growth model as special cases. Perhaps surprisingly, it also exhibits a dichotomy: one can determine the equilibrium path for the value of money independently of the paths of consumption, investment and employment in the centralized market.Money, Search, Capital
Sticky prices versus monetary frictions: an estimation of policy trade-offs
We develop a two-sector monetary model with a centralized and decentralized market. Activities in the centralized market resemble those in a standard New Keynesian economy with price rigidities. In the decentralized market agents engage in bilateral exchanges for which money is essential. The model is estimated and evaluated based on postwar U.S. data. We document its money demand properties and determine the optimal long-run inflation rate that trades off the New Keynesian distortion against the distortion caused by taxing money and hence transactions in the decentralized market. We find that target rates of -1% or less are desirable, which contrasts with policy recommendations derived from a cashless New Keynesian model.
Edip'ten baĆka olmayan Edip
Taha Toros ArĆivi, Dosya No: 20-Edip-Turgut-Hasan Ferit CanseverUnutma Ä°stanbul projesi Ä°stanbul Kalkınma Ajansı'nın 2016 yılı "Yenilikçi ve Yaratıcı Ä°stanbul Mali Destek Programı" kapsamında desteklenmiĆtir. Proje No: TR10/16/YNY/010
Real-time macroeconomic monitoring: real activity, inflation, and interactions
The authors sketch a framework for monitoring macroeconomic activity in real-time and push it in new directions. In particular, they focus not only on real activity, which has received most attention to date, but also on inflation and its interaction with real activity. As for the recent recession, the authors find that (1) it likely ended around July 2009; (2) its most extreme aspects concern a real activity decline that was unusually long but less unusually deep, and an inflation decline that was unusually deep but brief; and (3) its real activity and inflation interactions were strongly positive, consistent with an adverse demand shock.Financial crises ; Real-time data ; Macroeconomics
Real-Time Macroeconomic Monitoring: Real Activity, Inflation, and Interactions
We sketch a framework for monitoring macroeconomic activity in real-time and push it in new directions. In particular, we focus not only on real activity, which has received most attention to date, but also on inflation and its interaction with real activity. As for the recent recession, we find that (1) it likely ended around July 2009; (2) its most extreme aspects concern a real activity decline that was unusually long but less unusually deep, and an inflation decline that was unusually deep but brief; and (3) its real activity and inflation interactions were strongly positive, consistent with an adverse demand shock.Nowcasting, Prices, Wages, Business cycle, Expansion, Contraction, Recession, Turning point, State-space model, Dynamic factor model
ĂemberlitaĆ turĆucusu tarih oluyor
Taha Toros ArĆivi, Dosya No: 112-Pastahaneler, Bozacılar, Gazozcular, Börekçiler, TurĆucular, SucularÄ°stanbul Kalkınma Ajansı (TR10/14/YEN/0033) Ä°stanbul Development Agency (TR10/14/YEN/0033
The macroeconomy and the yield curve: a nonstructural analysis
We estimate a model with latent factors that summarize the yield curve (namely, level, slope, and curvature) as well as observable macroeconomic variables (real activity, inflation, and the stance of monetary policy). Our goal is to provide a characterization of the dynamic interactions between the macroeconomy and the yield curve. We find strong evidence of the effects of macro variables on future movements in the yield curve and much weaker evidence for a reverse influence. We also relate our results to a traditional macroeconomic approach based on the expectations hypothesis
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