Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1304
result(s)
Aggregate and Welfare Effects of Redistribution of Wealth Under Inflation and Price-Level Targeting
Staff Working Paper 2008-31
Césaire Meh,
José-Víctor Ríos-Rull,
Yaz Terajima
Since the work of Doepke and Schneider (2006a) and Meh and Terajima (2008), we know that inflation causes major redistribution of wealth – between households and the government, between nationals and foreigners, and between households within the same country.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Inflation and prices,
Inflation targets,
Inflation: costs and benefits,
Monetary policy framework,
Sectoral balance sheet
JEL Code(s):
D,
D3,
D31,
E,
E2,
E21,
E3,
E31,
E4,
E44,
E5,
E52,
E6,
E63
Non-Linearities, Model Uncertainty, and Macro Stress Testing
Staff Working Paper 2008-30
Miroslav Misina,
David Tessier
A distinguishing feature of macro stress testing exercises is the use of macroeconomic models in scenario design and implementation. It is widely agreed that scenarios should be based on "rare but plausible" events that have either resulted in vulnerabilities in the past or could do so in the future.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability
JEL Code(s):
C,
C1,
C15,
G,
G2,
G21,
G3,
G33
Macroeconomic Determinants of the Term Structure of Corporate Spreads
Staff Working Paper 2008-29
Jun Yang
We investigate the macroeconomic determinants of corporate spreads using a no-arbitrage technique. Structural shocks are identified by a New-Keynesian model. Treasury bonds are priced in an affine model with time-varying risk premia.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Debt management,
Financial markets,
Interest rates
JEL Code(s):
E,
E4,
E43,
E44,
G,
G1,
G12
The Welfare Implications of Fiscal Dominance
Staff Working Paper 2008-28
Carlos De Resende,
Nooman Rebei
This paper studies the interdependence between fiscal and monetary policy in a DSGE model with sticky prices and non-zero trend inflation. We characterize the fiscal and monetary policies by a rule whereby a given fraction k of the government debt must be backed by the discounted value of current and future primary surpluses.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Fiscal policy,
Inflation: costs and benefits,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E4,
E42,
E5,
E50,
E6,
E63
Are Bygones not Bygones? Modeling Price Level Targeting with an Escape Clause and Lessons from the Gold Standard
Staff Working Paper 2008-27
Paul Masson,
Malik Shukayev
Like the gold standard, price level targeting (PT) involves not letting past deviations of inflation be bygones; both regimes return the price level (or price of gold) to its target. The experience of suspension of the gold standard in World War I, resumption in the 1920s (for some countries at a different parity), and final abandonment is reviewed.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credibility,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52
Price-Level versus Inflation Targeting with Financial Market Imperfections
Staff Working Paper 2008-26
Francisco Covas,
Yahong Zhang
This paper compares price-level-path targeting (PT) with inflation targeting (IT) in a sticky-price, dynamic, general equilibrium model augmented with imperfections in both the debt and equity markets.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E4,
E40,
E5,
E50
Good Policies or Good Fortune: What Drives the Compression in Emerging Market Spreads?
Staff Working Paper 2008-25
Philipp Maier,
Garima Vasishtha
Since 2002, spreads on emerging market sovereign debt have fallen to historical lows. Given the close links between sovereign spreads, capital flows to emerging markets, and economic growth, understanding the factors driving these spreads is very important. We address this issue in two stages.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Development economics,
Financial stability,
International topics
JEL Code(s):
E,
E4,
E43,
F,
F3,
F34,
G,
G1,
G12,
G15
Do Central Banks Respond to Exchange Rate Movements? Some New Evidence from Structural Estimation
Staff Working Paper 2008-24
Wei Dong
This paper investigates the impact of exchange rate movements on the conduct of monetary policy in Australia, Canada, New Zealand and the United Kingdom. We develop and estimate a structural general equilibrium two-sector model with sticky prices and wages and limited exchange rate pass-through.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
International topics,
Monetary policy framework
JEL Code(s):
F,
F3,
F4
On the Amplification Role of Collateral Constraints
Staff Working Paper 2008-23
Caterina Mendicino
Following the seminal contribution of Kiyotaki and Moore (1997), the role of collateral constraints for business cycle fluctuations has been highlighted by several authors and collateralized debt is becoming a popular feature of business cycle models.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Credit and credit aggregates
JEL Code(s):
E,
E2,
E20,
E3,
E32