A5008366973- Monetary Policy and Economic Impact
- Economic theories and models
- Market Dynamics and Volatility
- Economic Theory and Policy
- Financial Markets and Investment Strategies
- Complex Systems and Time Series Analysis
- Global Energy and Sustainability Research
- European Monetary and Fiscal Policies
- Economic Policies and Impacts
- Global Financial Crisis and Policies
- Natural Resources and Economic Development
- Italy: Economic History and Contemporary Issues
- Fiscal Policy and Economic Growth
- Energy, Environment, and Transportation Policies
- Banking stability, regulation, efficiency
- Renewable energy and sustainable power systems
- Economic Growth and Productivity
- Regional Development and Policy
- Energy, Environment, Economic Growth
- Fiscal Policies and Political Economy
- Economics of Agriculture and Food Markets
- Global trade and economics
- Financial Literacy, Pension, Retirement Analysis
- Food Safety and Hygiene
- German Economic Analysis & Policies
European Central Bank
2011-2025
Bank of Spain
2009-2024
Center for Economic and Policy Research
2010-2023
National Bureau of Economic Research
2023
International Paper (United States)
2023
Swedish National Bank
2023
Centre de Recerca en Economia Internacional
2023
Centre for Economic Policy Research
2011-2015
Ecolab (Germany)
2015
Universitat Pompeu Fabra
2003-2012
We assess the extent to which greater US macroeconomic stability since mid‐1980s can be accounted for by changes in oil shocks and elasticity of gross output. estimate a DSGE model perform counterfactual simulations. nest two popular explanations Great Moderation: smaller (non‐oil\link real better monetary policy. find that played an important role stabilisation. Around half reduced volatility inflation is explained policy alone, 57% GDP growth attributed TFP shocks. Oil related effects...
Recent treatments of the issue a zero floor on nominal interest rates have been subject to some important methodological limitations. These include assumption perfect foresight or introduction lower bound as an initial condition constraint variance rate, rather than occasionally binding non-negativity constraint. This paper addresses these issues offering global solution standard dynamic stochastic sticky price model with explicit rate. It turns out that dynamics and sometimes unconditional...
Journal Article Saudi Arabia and the Oil Market Get access Anton Nakov, Nakov Bank of Spain Search for other works by this author on: Oxford Academic Google Scholar Galo Nuño European Central The Economic Journal, Volume 123, Issue 573, 1 December 2013, Pages 1333–1362, https://doi.org/10.1111/ecoj.12031 Published: 03 June 2013 history Accepted: 14 2012 Received: April
Monetary policy communication is particularly important during unconventional times, because high uncertainty about the economy, introduction of new tools and possible limits to central bank's toolkit could hamper predictability actions. We study how monetary should has worked under such circumstances. Our main results relate announcements asset purchase programmes use forward guidance. show that have lowered market uncertainty, when accompanied by a contextual release implementation details...
We study the distribution of retail price adjustments under assumption that firms are more likely to adjust their prices when doing so is valuable. Our setup nests Calvo (1983 ) at one extreme and a fixed menu cost model other; all parameterizations ranked by measure state dependence. High dependence implies, counterfactually, there no small changes variance falls sharply with trend inflation. The parameterization best fits microdata has low dependence, implying Phillips curve coefficient...
We model oil production decisions from optimizing principles rather than assuming exogenous price shocks and show that the presence of a dominant producer leads to sizable static dynamic distortions process. Under our calibration, distortion costs U.S. around 1.6% GDP per year. In addition, distortion, reflected in inefficient fluctuations markup, generates trade‐off between stabilizing inflation aligning output with its efficient level. Our is step away discussing effects variations toward...
We propose a near-rational model of retail price adjustment consistent with microeconomic and macroeconomic evidence on dynamics. Our framework is based the idea that avoiding errors in decision making costly. Given our assumed cost function for error avoidance, timing firms’ adjustments determined by weighted binary logit, prices they choose are multinomial logit. build this behavior into DSGE model, estimate matching microdata, simulate aggregate dynamics using tractable algorithm...
We present a general equilibrium model of the global oil market, in which price, production, and consumption, are jointly determined as outcomes optimizing decisions importers exporters. On supply side market is modelled dominant firm – Saudi Aramco with competitive fringe. establish that may exist long it enjoys cost advantage over provide an expression for optimal markup compute spare capacity maintained by such firm. The produces plausible dynamics response to demand shocks. In...
This paper proposes two models in which price stickiness arises endogenously even though firms are free to change their prices at zero physical cost. Firms subject idiosyncratic and aggregate shocks, they also face a risk of making errors when set prices. In our first specification, assumed play dynamic logit equilibrium, implies that big mistakes less likely than small ones. The second specification derives behavior from an assumption precision is costly. empirical implications the versions...
Abstract We study monetary transmission in a model of state-dependent prices and wages based on ‘control costs’. Stickiness arises because precise choice is costly: decision makers tolerate errors both the timing adjustments, new level at which price or wage set. The calibrated to microdata size frequency changes. In our simulations, money shocks have less persistent real effects than Calvo framework; nonetheless, exhibits substantial degree non-neutrality, driven mainly by rigidity....
The paper presents a theory of nominal asset prices for competitively owned oil. Focusing on monetary effects, with flexible oil the US dollar price should follow aggregate level. But rigid prices, jumps proportionally to interest rate increases. We find evidence structural breaks in that are used illustrate jumps. also indicates strong Granger causality by inflation as is consistent theory.
Saudi Arabia Is the largest player In world oil market. It maintains ample spare capacity, restricts investment in developing reserves, and its output is negatively correlated with other OPEC producers. While this behavior does not fit into perfect competition paradigm, we show that it can be rationalized as of a dominant producer competitive fringe. We build quantitative general equilibrium model along these lines which capable matching historical volatility price, non-competitive output,...
An exogenous oil price shock raises inflation and contracts output, similar to a negative productivity shock. In the standard New Keynesian model, however, this does not generate tradeoff between output gap volatility: under strict targeting policy, decline is exactly equal efficient contraction in response We propose an extension of model which presence dominant supplier (OPEC) leads inefficient fluctuations markup, reflecting dynamic distortion economy´s production process. As result, face...
In this paper, we show that a simple model of smoothly state-dependent pricing generates distribution price adjustments similar to observed in microeconomic data, both for low and high inflation. Our setup is based on one fundamental assumption: adjustment more likely when it valuable. The constant probability (Calvo 1983) the fixed stochastic menu cost models (Golosov Lucas 2007; Dotsey, King Wolman 1999) are nested as special cases our framework.
This paper analyzes the effects of monetary shocks in a DSGE model that allows for general form smoothly state-dependent pricing by firms. As Dotsey, King, and Wolman (1999) Caballero Engel (2007), our setup is based on one fundamental property: firms are more likely to adjust their prices when doing so valuable. The exogenous timing (Calvo 1983) fixed menu cost (Golosov Lucas 2007) models nested as limiting cases setup.
The digitalisation workstream report analyses the degree of digital adoption across euro area and EU countries implications for measurement, productivity, labour markets inflation, as well more recent developments during coronavirus (COVID-19) pandemic their implications. Analysis these key issues variables is aimed at improving our understanding monetary policy its transmission. differs area/EU, implying heterogeneous impacts, with most economies currently lagging behind United States...
Monetary policy communication is particularly important during unconventional times, because high uncertainty about the economy, introduction of new tools and possible limits to central bank’s toolkit could hamper predictability actions. We study how monetary should has worked under such circumstances. Our main results relate announcements asset purchase programmes use forward guidance. show that have lowered market uncertainty, when accompanied by a contextual release implementation details...