Search Results

Showing results 1 to 10 of approximately 60.

(refine search)
SORT BY: PREVIOUS / NEXT
Author:Fisher, Jonas D. M. 

Working Paper
The limits of forward guidance

The viability of forward guidance as a monetary policy tool depends on the horizon over which it can be communicated and its influence on expectations over that horizon. We develop and estimate a model of imperfect central bank communications and use it to measure how effectively the Fed has managed expectations about future interest rates and the influence of its communications on macroeconomic outcomes. Standard models assume central banks have perfect control over expectations about the policy rate up to an arbitrarily long horizon and this is the source of the so-called ?forward guidance ...
Working Paper Series , Paper WP-2019-3

Working Paper
Fiscal shocks in an efficiency wage model

This paper illustrates a particular limited information strategy for assessing the empirical plausibility of alternative quantitative general equilibrium business cycle models. The basic strategy is to test whether a model economy can account for the response of actual economy to an exogenous shock. Here we concentrate on the response of aggregate hours worked and real wages to a fiscal policy shock. The fiscal policy shock is identified with the dynamic response of government purchases and averages marginal income tax rates to an exogenous increase in military purchases. Burnside, Eichenbaum ...
Working Paper Series , Paper WP-99-19

Discussion Paper
(S,s) inventory policies in general equilibrium

We study the aggregate implications of (S,s) inventory policies in a dynamic general equilibrium model. Firms in the model's retail sector face idiosyncratic demand risk, and (S,s) inventory policies are optimal because of fixed order costs. The model economy replicates salient features of the business cycle and reconciles evidence that orders are more volatile than sales, and that inventory investment is positively correlated with sales. There are two main results. First, we find that general equilibrium effects and the optimal order size are important for the economy's response to exogenous ...
Discussion Paper / Institute for Empirical Macroeconomics , Paper 104

Newsletter
Changes in the Risk-Management Environment for Monetary Policy

In response to the massive challenges presented by the global financial crisis, in late 2007 the Federal Open Market Committee (FOMC) began a series of large reductions in its traditional policy tool, the overnight interest rate in the federal funds market. By December 2008 the Committee had lowered the target to its effective lower bound (ELB) of 0 to 25 basis points.1 Later, in an attempt to provide additional monetary stimulus, the FOMC implemented nontraditional policy tools, such as large-scale asset purchases and forward guidance about how long the fed funds rate would stay at very low ...
Chicago Fed Letter

Discussion Paper
Aggregate employment fluctuations with microeconomic asymmetries

We provide a simple explanation for the observation that the variance of job destruction is greater than the variance of job creation: job creation is costlier at the margin than job destruction. As Caballero [2] has argued, asymmetric employment adjustment costs at the establishment level need not imply asymmetric volatility of aggregate job flows. We construct an equilibrium model in which (S,s)-type employment policies respond endogenously to aggregate shocks. The microeconomic asymmetries in the model can dampen the response of total job creation to an aggregate shock and cause it to be ...
Discussion Paper / Institute for Empirical Macroeconomics , Paper 112

Journal Article
The new view of growth and business cycles

Evidence on the cost of business equipment investment supports a new way of understanding growth and business cycles. The equipment price has been falling for most of the last 40 years and it tends to fall more the faster economy is growing. This suggests that technological change embodied in new capital equipment has a substantial effect on growth and business cycles.
Economic Perspectives , Volume 23 , Issue Q I , Pages 35-56

Journal Article
Understanding aggregate job flows

The authors describe how evidence on aggregate job flows challenges standard business cycle theory and discuss recent developments in business cycle theory aimed at accounting for the evidence.
Economic Perspectives , Volume 21 , Issue Sep

Working Paper
Credit market imperfections and the heterogeneous response of firms to monetary shocks

This paper assesses the bank-lending channel interpretation of evidence on the heterogeneous response of firms to monetary shocks. To do so I develop a quantitative general equilibrium model of the bank-lending channel with imperfect credit markets. The calibrated model's steady state supports a common identification strategy adopted in the literature: small firms are credit constrained and large firms are not. For some parameter values the model reproduces the cyclical observations viewed as supporting the lending view of the monetary transmission mechanism and for others it does not. The ...
Working Paper Series, Macroeconomic Issues , Paper 96-23

Working Paper
Algorithms for solving dynamic models with occasionally binding constraints

A description and comparison of several algorithms for approximating the solution to a model in which inequality constraints occasionally bind. Their performance is evaluated using various parameterizations of the one-sector growth model with irreversible investment.
Working Papers (Old Series) , Paper 9711

Working Paper
Algorithms for solving dynamic models with occasionally binding constraints

We describe and compare several algorithms for approximating the solution to a model in which inequality constraints occasionally bind. Their performance is evaluated and compared using various parameterizations of the one sector growth model with irreversible investment. We develop parameterized expectation algorithms which, on the basis of speed, accuracy and convenience of implementation, appear to dominate the other algorithms.
Working Paper Series, Macroeconomic Issues , Paper WP-97-15

FILTER BY year

FILTER BY Content Type

Working Paper 38 items

Journal Article 8 items

Newsletter 8 items

Report 3 items

Discussion Paper 2 items

Conference Paper 1 items

show more (1)

FILTER BY Jel Classification

E0 2 items

E00 2 items

E52 2 items

E1 1 items

E3 1 items

E4 1 items

show more (9)

FILTER BY Keywords

Business cycles 16 items

Monetary policy 9 items

Fiscal policy 6 items

Employment (Economic theory) 5 items

Capital assets pricing model 4 items

Inflation (Finance) 4 items

show more (74)

PREVIOUS / NEXT