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View article: Industrial Composition of Syndicated Loans and Banks’ Climate Commitments
Industrial Composition of Syndicated Loans and Banks’ Climate Commitments Open
In the past two decades, a number of banks joined global initiatives aimed to mitigate climate change by “greening” their asset portfolios. We study whether banks that made such commitments have a different emission exposure of their portf…
View article: Would the Euro Area Benefit from Greater Labor Mobility?
Would the Euro Area Benefit from Greater Labor Mobility? Open
We assess how within euro area labor mobility impacts economic dynamics in response to shocks. In the analysis we use an estimated two-region monetary union dynamic stochastic general equilibrium model that allows for a varying degree of l…
View article: The Active Role of the Natural Rate of Unemployment
The Active Role of the Natural Rate of Unemployment Open
We develop a tractable multicountry general equilibrium model with imperfect capital mobility to explore the implications of demographic trends for the evolution of real interest rates across countries and over time. We calibrate the model…
View article: Fiscal Policy Design and Inflation: The COVID-19 Pandemic Experience
Fiscal Policy Design and Inflation: The COVID-19 Pandemic Experience Open
The significant rise in inflation (nearly) worldwide has been associated with different shocks and a range of policy responses to the COVID-19 pandemic. We study how the design of fiscal support measures helps explain the origins of the po…
View article: Inflation and Wage Growth Since the Pandemic
Inflation and Wage Growth Since the Pandemic Open
Following the worst of the COVID-19 pandemic, inflation surged to levels last seen in the 1980s. Motivated by vast differences in pandemic support across countries, we investigate the subsequent response of inflation and its feedback to wa…
View article: Using Brexit to identify the nature of price rigidities
Using Brexit to identify the nature of price rigidities Open
Using price quote data that underpin the official U.K. consumer price index (CPI), we analyze the effects of the unexpected passing of the Brexit referendum on the dynamics of price adjustments. The sizable depreciation of the British poun…
View article: Taylor rule estimation by OLS
Taylor rule estimation by OLS Open
Ordinary Least Squares (OLS) estimation of monetary policy rules produces potentially inconsistent estimates of policy parameters. The reason is that central banks react to variables, such as in ation and the output gap, which are endogeno…
View article: Using Brexit to Identify the Nature of Price Rigidities
Using Brexit to Identify the Nature of Price Rigidities Open
Using price quote data that underpin the official U.K. consumer price index (CPI), we analyze the effects of the unexpected passing of the Brexit referendum to the dynamics of price adjustments. The sizable depreciation of the British poun…
View article: Taylor Rule Estimation by OLS
Taylor Rule Estimation by OLS Open
Ordinary Least Squares (OLS) estimation of monetary policy rules produces potentially inconsistent estimates of policy parameters. The reason is that central banks react to variables, such as inflation and the output gap, that are endogeno…
View article: Sticker shocks: using VAT changes to estimate upper-level elasticities of substitution
Sticker shocks: using VAT changes to estimate upper-level elasticities of substitution Open
We estimate the upper-level elasticity of substitution between goods and services of a nested aggregate CES preference specification. We show how this elasticity can be derived from the long-run response of the relative price of a good to …
View article: Monetary Policy and Real Exchange Rate Dynamics in Sticky-Price Models
Monetary Policy and Real Exchange Rate Dynamics in Sticky-Price Models Open
We study how real exchange rate dynamics are affected by monetary policy in dynamic, stochastic, general equilibrium, sticky-price models. Our analytical and quantitative results show that the source of interest rate persistence - policy i…
View article: Shocks and Adjustments
Shocks and Adjustments Open
The manner firms respond to shocks reflects fundamental features of labor, capital, and commodity markets, as well as advances in finance and technology. Such features are integral to constructing models of the macroeconomy. In this paper …
View article: Measuring the Effect of the Zero Lower Bound on Monetary Policy
Measuring the Effect of the Zero Lower Bound on Monetary Policy Open
The Zero Lower Bound (ZLB) on interest rates is often regarded as an important constraint on monetary policy. To assess how the ZLB affected the Fed's ability to conduct policy, we estimate the effects of Fed communication on yields of dif…
View article: Factor Specificity and Real Rigidities
Factor Specificity and Real Rigidities Open
We develop a multisector model in which capital and labor are free to move across firms within each sector, but cannot move across sectors. To isolate the role of sectoral specificity, we compare our model with otherwise identical multisec…
View article: Demographics and Real Interest Rates: Inspecting the Mechanism
Demographics and Real Interest Rates: Inspecting the Mechanism Open
The demographic transition can affect the equilibrium real interest rate through three channels. An increase in longevity-or expectations thereof-puts downward pressure on the real interest rate, as agents build up their savings in anticip…