E50

Monetary Policy, Central Banking, and the Supply of Money and Credit: General

Firm Uncertainty Cycles and the Propagation of Nominal Shocks

JEL codes: 
E50
Version Date: 
Feb 2017
Author/s: 
Abstract: 

Firms operate in constantly changing and uncertain environments. We argue that firm uncertainty is a key determinant of pricing decisions, and that it affects the propagation of nominal shocks in the economy. For this purpose, we develop a price-setting model with menu costs and imperfect information about idiosyncratic productivity.

Report file: 
Download the paper (1.77 MB)

Monetary Transmission Mechanism and Time Variation in the Euro Area

JEL codes: 
C11, C32, C33, E50
Version Date: 
Nov 2012
Author/s: 
Abstract: 

This paper examines the monetary transmission mechanism in the euro area for the period of single monetary policy using factor-augmented vector autoregressive (FAVAR) techniques. The contributions of the paper are fourfold. First, a novel dataset consisting of 120 disaggregated macroeconomic time series spanning the period 1999:M1 through 2011:M12 is gathered for the euro area as an aggregate.

Report file: 
Download the paper (1.49 MB)

Real-Time Model Uncertainty in the United States: the Fed from 1996-2003

JEL codes: 
C50, C60, E37, E50
Version Date: 
Sep 2005
Abstract: 

We study 30 vintages of FRB/US, the principal macro model used by the Federal Reserve Board staff for forecasting and policy analysis. To do this, we exploit archives of the model code, coefficients, baseline databases and stochastic shock sets stored after each FOMC meeting from the model’s inception in July 1996 until November 2003.

Report file: 
Download the paper (1.41 MB)