Index Catalog // Research Database

Alpha Creator Tesim:: Chari, V. V., Kehoe, Patrick J., and Prescott, Edward C.
Series:: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.)
Number:: 365
Palabra clave:: Choice, Monetary policy, Economic policy, Macroeconomics, and Decision making
Tema:: D99 - Intertemporal choice and growth - Other, E61 - Macroeconomic policy, macroeconomic aspects of public finance, and general outlook - Policy objectives ; Policy designs and consistency ; Policy coordination, and D81 - Information, knowledge, and uncertainty - Criteria for decision-making under risk and uncertainty

Alpha Creator Tesim:: Roberds, William.
Series:: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.)
Number:: 298
Abstract Tesim:: The consequences of a straightforward monetary targeting scheme are examined for a simple dynamic macro model. The notion of "targeting" used below is the strategic one introduced by Rogoff (1985). Numerical simulations are used to demonstrate that for the model under consideration, monetary targeting is likely to lead to a deterioration of policy performance. These examples cast doubt upon the general efficacy of simple targeting schemes in dynamic rational expectations models.
Palabra clave:: Monetary targeting, Macroeconomic model, Monetary policy, and Rational expectations
Tema:: C61 - Mathematical methods and programming - Optimization techniques ; Programming models ; Dynamic analysis and E52 - Monetary policy, central banking, and the supply of money and credit - Monetary policy

Alpha Creator Tesim:: Backus, David. and Kehoe, Patrick J.
Series:: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.)
Number:: 348
Abstract Tesim:: We derive the empirical implications of a popular class of international macroeconomic models. The real economy is a stochastic exchange model with complete markets. A standard result is that cross-country risk sharing implies perfect correlation between consumption paths across countries. With mild restrictions on the endowment process ii also implies a positive correlation between net exports and output in every country. We introduce money using cash-in-advance constraints and show that the implications for real variables carry over into the monetary economy. These dichotomy and neutrality propositions generalize those in the literature to stochastic environments with heterogeneous agents, and do not require the cash-in-advance constraint to bind in every state. They imply that any correlation between the nominal exchange rate and the balance of trade can be made consistent with the theory.
Palabra clave:: Government finance, Exchange rates, Cash-in-advance, Monetary policy, and Risk-sharing
Tema:: E32 - Prices, business fluctuations, and cycles - Business fluctuations ; Cycles, F30 - International finance - General, and D46 - Market structure and pricing - Value theory

Alpha Creator Tesim:: Smith, Bruce D., d. 2002.
Series:: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.)
Number:: 406
Palabra clave:: Prices, Money, Quantity theory of money, Inflation, Central banking, and Monetary policy
Tema:: E52 - Monetary policy, central banking, and the supply of money and credit - Monetary policy and E31 - Prices, business fluctuations, and cycles - Price level ; Inflation ; Deflation

Alpha Creator Tesim:: Backus, David. and Kehoe, Patrick J.
Series:: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.)
Number:: 348
Abstract Tesim:: We derive the empirical implications of a popular class of international macroeconomic models. The real economy is a stochastic exchange model with complete markets. A standard result is that cross-country risk sharing implies perfect correlation between consumption paths across countries. With mild restrictions on the endowment process ii also implies a positive correlation between net exports and output in every country. We introduce money using cash-in-advance constraints and show that the implications for real variables carry over into the monetary economy. These dichotomy and neutrality propositions generalize those in the literature to stochastic environments with heterogeneous agents, and do not require the cash-in-advance constraint to bind in every state. They imply that any correlation between the nominal exchange rate and the balance of trade can be made consistent with the theory.
Palabra clave:: Government finance, Exchange rates, Risk-sharing, Monetary policy, and Cash-in-advance
Tema:: E32 - Prices, business fluctuations, and cycles - Business fluctuations ; Cycles, F30 - International finance - General, and D46 - Market structure and pricing - Value theory