Topics of readings | Author and year |
Definitions of policy goals, targets and instruments. Criticism of model below. History of Fed operating procedures | |
Optimal monetary policy instrument/target choice model | |
Target choice can affect variables' average levels | |
Threat of zero bound and deflation spiral, alternatives to stimulate the economy | |
ECB's monetary pillar, is money necessary in a model of inflation? The pitfalls of relying on money as an indicator | |
Out-of-sample forecast performance study, NKM with and without money | |
Bank of England assessment of which assets should be included as 'money', difference to M4 measure | |
Scaling up M2 to include the shadow banking system could have helped prevent the crisis | |
Adjusting US dollar for international holdings helps improve its predictive content for inflation | |
What the financial crisis has taught economists about stabilisation policy, and the Great Moderation, and implications for policy design (particularly instruments and targets) | |
The UK experience of the Great Moderation and financial crisis, and implications for future Bank of England policy | |
Real effects of money shock due to confusion about whether shock is relative or aggregate. Prediction that real effect of AD shock is smaller in an economy where demand shock varia | |
Test of the latter model prediction | |
Wage setting rigidity model, creates price but not inflation inertia | |
Firm price adjustment according to a Poisson process | |
Inflation persistence achieved in a model by basing real wage contracts on real wages of previous and next periods | |
Criticism for the above model, unrealistic assumptions about wage contracts | |
Sticky information about inflation target results in inflation inertia and costly disinflations | |
Disinflation booms under Taylor model, setting paths for prices is unrealistic | |
Hybrid Phillips Curve with 50% adaptive expectations, and evidence that survey inflation expectations respond to actual inflation | |
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