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Asset Market Participation, Monetary Policy Rules, and the Great Inflation / / Florin Bilbiie, Roland Straub



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Autore: Bilbiie Florin Visualizza persona
Titolo: Asset Market Participation, Monetary Policy Rules, and the Great Inflation / / Florin Bilbiie, Roland Straub Visualizza cluster
Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2006
Descrizione fisica: 1 online resource (34 p.)
Soggetto topico: Inflation (Finance)
Monetary policy
Banks and Banking
Finance: General
Inflation
Macroeconomics
Price Level
Deflation
Business Fluctuations
Cycles
Financial Markets and the Macroeconomy
Monetary Policy
Central Banks and Their Policies
Studies of Particular Policy Episodes
Economic History: Macroeconomics
Growth and Fluctuations: U.S
Canada: 1913-
Economic History: Financial Markets and Institutions: U.S
General Financial Markets: General (includes Measurement and Data)
Macroeconomics: Consumption
Saving
Wealth
Interest Rates: Determination, Term Structure, and Effects
Finance
Securities markets
Consumption
Hyperinflation
Real interest rates
Financial markets
Prices
National accounts
Financial services
Capital market
Economics
Interest rates
Soggetto geografico: United States
Altri autori: StraubRoland  
Note generali: "September 2006".
Nota di bibliografia: Includes bibliographical references.
Nota di contenuto: ""Contents""; ""I. Introduction""; ""II. Limited Asset Market Participation and Monetary Policy: Some Theory""; ""III. Empirical Evidence""; ""IV. Change in Structure of Economy or in Distribution of Shocks?""; ""V. Conclusions""; ""General Model""
Sommario/riassunto: This paper argues that limited asset market participation is crucial in explaining U.S. macroeconomic performance and monetary policy before the 1980s, and their changes thereafter. We develop an otherwise standard sticky-price dynamic stochastic general equilibrium model, which implies that at low asset-market participation rates, the interest rate elasticity of output (the slope of the IS curve) becomes positive - that is, "non-Keynesian." Remarkably, in that case, a passive monetary policy rule ensures equilibrium determinacy and maximizes welfare. Consequently, we argue that the policy of the Federal Reserve System in the pre-Volcker era, often associated with a passive monetary policy rule, was closer to optimal than conventional wisdom suggests and may thus have remained unchanged at a fundamental level thereafter. We provide institutional and empirical evidence for our hypothesis, in the latter case using Bayesian estimation techniques, and show that our model is able to explain most features of the "Great Inflation.".
Titolo autorizzato: Asset Market Participation, Monetary Policy Rules, and the Great Inflation  Visualizza cluster
ISBN: 1-4623-6796-8
1-4527-8747-6
1-282-58659-9
9786613822536
1-4519-9219-X
Formato: Materiale a stampa
Livello bibliografico Monografia
Lingua di pubblicazione: Inglese
Record Nr.: 9910788519203321
Lo trovi qui: Univ. Federico II
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Serie: IMF Working Papers; Working Paper ; ; No. 2006/200