Glenn Stevens, Claes Berg, Ben Bernanke, Peter Bofinger, Stefan Gerlach, ...
The paper examines the transmission mechanism of monetary policy in an open economy with and without a binding zero bound on nominal interest rates. In particular, a foolproof way of escaping from a...
Dale Henderson, Bennett Mccallum, Anders Vredin, ...
conferences at the Bank of England and Insead and in the NBER Summer Institute, and the editors and referees for specific comments on previous versions of this paper. I also thank Annika Andreasson...
Laboratory Experiments with an Expectational Phillips Curve (2001)
Jasmina Arifovic Simon, Thomas J. Sargent, Colin Camerer, Timothy Cogley, Tom Palfrey, Christopher Sims
We pay human subjects to be the policy maker and the public in an expectational Phillips curve model. Policy makers often find ways to achieve the time-inconsistent optimal inflation rate, at least...
Tight Money Paradox on the Loose: A Fiscalist Hyperinflation,” manuscript (1999)
Eduardo Loyo, John F. Kennedy, Alan Blinder, Jean Boivin, Marco Antonio Bonomo, Dionísio Dias Carneiro, ...
ABSTRACT: Hyperinflation is usually interpreted as a result of the monetary financing of serious fiscal imbalances. Here, a fiscalist alternative is explored, in which inflation explodes because of...
Dale Henderson, Bennett Mccallum, Anders Vredin, ...
It is argued that inflation targeting is best understood as a commitment to a targeting rule rather than an instrument rule, eitherageneral targeting rule (explicit objectives for monetary policy) or...
World income components: Measuring and exploiting international risk sharing opportunities (1995)
Stefano G. Athanasoulis, Robert J. Shiller, Maurice Obstfeld, Kenneth Rogoff, Xavier Sala-i-martin, Christopher Sims, ...
Foundation. We provide a method for decomposing the variance of changes in incomes in the world into components, world income components (WICs), in such a way as to indicate the most important...
A Review of Monetary Policy Rules
This article reviews Monetary Policy Rules, edited by John Taylor. The book evaluates the Taylor rule, a policy rule that specifies changes in the central bank's interest rate according to what is...
Forecasting and conditional projection using realistic prior distributions
Thomas Doan, Robert Litterman, Christopher Sims
This paper develops a forecasting procedure based on a Bayesian method for estimating vector autoregressions. The procedure is applied t o 10 macroeconomic variables and is shown to improve...
We discuss the results of fitting a 6-variable structural VAR in which we allow for certain types of parameter variation over time. Allowing structural equation variances to change over time is...
Model uncertainty and policy evaluation: some theory and empirics - comments
Fiscal policy ; Monetary policy
Matlab Code for Solving Linear Rational Expectations Models
A computationally robust solution method for linear rational expectations models is displayed, based on the QZ matrix decomposition. Any rational expectations model, in continuous or discrete time,...
Matlab Code for Second Order Accurate Solution of Discrete Time Dynamic Equilibrium Models
From the first and second derivatives of a set of equations that may include expectational Euler equations, this algorithm produces a second-order accurate expansion of the mapping from "states" to...
Matlab programs that solve nonlinear equations and minimize using quasi-Newton with BFGS update. The programs are somewhat more robust, apparently, than the stock Matlab programs that do about the...