Demand Shocks, Hysteresis and Monetary Policy
Author
Abstract
Suggested Citation
DOI: 10.17016/FEDS.2022.080
Download full text from publisher
References listed on IDEAS
- Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(2), pages 217-235.
- Guerrieri, Luca & Iacoviello, Matteo, 2015.
"OccBin: A toolkit for solving dynamic models with occasionally binding constraints easily,"
Journal of Monetary Economics, Elsevier, vol. 70(C), pages 22-38.
- Matteo Iacoviello, 2014. "OccBin: A Toolkit for Solving Dynamic Models With Occasionally Binding Constraints Easily," 2014 Meeting Papers 801, Society for Economic Dynamics.
- Luca Guerrieri & Matteo Iacoviello, 2014. "OccBin: A Toolkit for Solving Dynamic Models With Occasionally Binding Constraints Easily," Finance and Economics Discussion Series 2014-47, Board of Governors of the Federal Reserve System (U.S.).
- Mankiw, N Gregory, 2001.
"The Inexorable and Mysterious Tradeoff between Inflation and Unemployment,"
Economic Journal, Royal Economic Society, vol. 111(471), pages 45-61, May.
- N. Gregory Mankiw, 2000. "The Inexorable and Mysterious Tradeoff Between Inflation and Unemployment," NBER Working Papers 7884, National Bureau of Economic Research, Inc.
- N. Gregory Mankiw, 2000. "The Inexorable and Mysterious Tradeoff Between Inflation and Unemployment," Harvard Institute of Economic Research Working Papers 1905, Harvard - Institute of Economic Research.
- Fair, Ray C & Taylor, John B, 1983.
"Solution and Maximum Likelihood Estimation of Dynamic Nonlinear Rational Expectations Models,"
Econometrica, Econometric Society, vol. 51(4), pages 1169-1185, July.
- Ray C. Fair & John B. Taylor, 1980. "Solution and Maximum Likelihood Estimation of Dynamic Nonlinear RationalExpectations Models," NBER Technical Working Papers 0005, National Bureau of Economic Research, Inc.
- Ray C. Fair & John B. Taylor, 1980. "Solution and Maximum Likelihood Estimation of Dynamic Nonlinear Rational Expectations Models," Cowles Foundation Discussion Papers 564, Cowles Foundation for Research in Economics, Yale University.
- Frank Smets & Rafael Wouters, 2007.
"Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach,"
American Economic Review, American Economic Association, vol. 97(3), pages 586-606, June.
- Smets, Frank & Wouters, Raf, 2007. "Shocks and frictions in US business cycles: a Bayesian DSGE approach," Working Paper Series 722, European Central Bank.
- Smets, Frank & Wouters, Rafael, 2007. "Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach," CEPR Discussion Papers 6112, C.E.P.R. Discussion Papers.
- Frank Smets & Raf Wouters, 2007. "Shocks and Frictions in US Business Cycles : a Bayesian DSGE Approach," Working Paper Research 109, National Bank of Belgium.
- Blanchard, Oliver & Cerutti, Eugenio & SUmmers, Lawrence, 2015.
"Inflation and Activity - Two Explorations and Their Monetary Policy Implications,"
Working Paper Series
15-070, Harvard University, John F. Kennedy School of Government.
- Olivier Blanchard & Eugenio Cerutti & Lawrence Summers, 2015. "Inflation and Activity – Two Explorations and their Monetary Policy Implications," NBER Working Papers 21726, National Bureau of Economic Research, Inc.
- Mr. Olivier J Blanchard & Mr. Eugenio M Cerutti & Lawrence Summers, 2015. "Inflation and Activity – Two Explorations and their Monetary Policy Implications," IMF Working Papers 2015/230, International Monetary Fund.
- Olivier Blanchard & Eugenio Cerutti & Lawrence H. Summers, 2015. "Inflation and Activity: Two Explorations and Their Monetary Policy Implications," Working Paper Series WP15-19, Peterson Institute for International Economics.
- Richard Baldwin & Paul Krugman, 1989.
"Persistent Trade Effects of Large Exchange Rate Shocks,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(4), pages 635-654.
- Richard Baldwin & Paul R. Krugman, 1986. "Persistent Trade Effects of Large Exchage Rate Shocks," NBER Working Papers 2017, National Bureau of Economic Research, Inc.
- Olivier Blanchard, 2018.
"Should We Reject the Natural Rate Hypothesis?,"
Journal of Economic Perspectives, American Economic Association, vol. 32(1), pages 97-120, Winter.
- Olivier J Blanchard, 2017. "Should We Reject the Natural Rate Hypothesis?," Working Paper Series WP17-14, Peterson Institute for International Economics.
- Olivier Jean Blanchard & Peter Diamond, 1994.
"Ranking, Unemployment Duration, and Wages,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 417-434.
- Blanchard, O.J. & Diamond, P., 1990. "Ranking, Unemployment Duration, And Wages," Working papers 546, Massachusetts Institute of Technology (MIT), Department of Economics.
- Olivier Jean Blanchard & Peter Diamond, 1990. "Ranking, Unemployment Duration, and Wages," NBER Working Papers 3387, National Bureau of Economic Research, Inc.
- Julio J. Rotemberg, 1982. "Monopolistic Price Adjustment and Aggregate Output," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(4), pages 517-531.
- Kenneth Rogoff, 1985. "The Optimal Degree of Commitment to an Intermediate Monetary Target," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(4), pages 1169-1189.
- Timothy Dunne & Shawn D. Klimek & Mark J. Roberts & Daniel Yi Xu, 2009.
"The Dynamics of Market Structure and Market Size in Two Health Service Industries,"
NBER Chapters, in: Producer Dynamics: New Evidence from Micro Data, pages 303-327,
National Bureau of Economic Research, Inc.
- Timothy Dunne & Mark Roberts & Shawn Klimek & Yi Xu, 2007. "The Dynamics of Market Structure and Market Size in Two Health Services Industries," Working Papers 07-26, Center for Economic Studies, U.S. Census Bureau.
- Timothy Dunne & Shawn D. Klimek & Mark J. Roberts & Yi Xu, 2007. "The dynamics of market structure and market size in two health services industries," Working Papers (Old Series) 0712, Federal Reserve Bank of Cleveland.
- Devereux, Michael B. & Head, Allen C. & Lapham, Beverly J., 1996. "Aggregate fluctuations with increasing returns to specialization and scale," Journal of Economic Dynamics and Control, Elsevier, vol. 20(4), pages 627-656, April.
- Laurence Ball, 1999. "Aggregate demand and Long-Run Unemployment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 30(2), pages 189-252.
- Michael Woodford, 2001. "The Taylor Rule and Optimal Monetary Policy," American Economic Review, American Economic Association, vol. 91(2), pages 232-237, May.
- Romer, Paul M, 1990.
"Endogenous Technological Change,"
Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
- Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
- Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
- J. Bradford DeLong & Lawrence H. Summers, 2012. "Fiscal Policy in a Depressed Economy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 43(1 (Spring), pages 233-297.
- Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Oscar Jorda & Alan Taylor & Sanjay Singh, 2019.
"The Long-Run Effects of Monetary Policy,"
2019 Meeting Papers
1307, Society for Economic Dynamics.
- Òscar Jordà & Sanjay R. Singh & Alan M. Taylor, 2020. "The Long-Run Effects of Monetary Policy," NBER Working Papers 26666, National Bureau of Economic Research, Inc.
- Òscar Jordà & Sanjay R. Singh & Alan M. Taylor, 2020. "The Long-Run Effects of Monetary Policy," Working Paper Series 2020-01, Federal Reserve Bank of San Francisco.
- Taylor, Alan M. & Jordà , Òscar & Singh, Sanjay, 2020. "The long-run effects of monetary policy," CEPR Discussion Papers 14338, C.E.P.R. Discussion Papers.
- Di Domenico, Lorenzo & Gahn, Santiago José & Romaniello, Davide, 2024. "Testing the Waters of Positive Hysteresis: The Effects of Autonomous Demand Shocks on Inflation, Accumulation, and Labor in the US Economy," Centro Sraffa Working Papers CSWP64, Centro di Ricerche e Documentazione "Piero Sraffa".
- Nishi, Hiroshi & Stockhammer, Engelbert, 2020. "Distribution shocks in a Kaleckian model with hysteresis and monetary policy," Economic Modelling, Elsevier, vol. 90(C), pages 465-479.
- Garga, Vaishali & Singh, Sanjay R., 2021.
"Output hysteresis and optimal monetary policy,"
Journal of Monetary Economics, Elsevier, vol. 117(C), pages 871-886.
- Sanjay Singh, 2018. "Output Hysteresis and Optimal Monetary Policy," 2018 Meeting Papers 554, Society for Economic Dynamics.
- Vaishali Garga & Sanjay R. Singh, 2019. "Output Hysteresis and Optimal Monetary Policy," Working Papers 19-19, Federal Reserve Bank of Boston.
- Sanjay R. Singh & Vaishali Garga, 2019. "Output Hysteresis and Optimal Monetary Policy," Working Papers 331, University of California, Davis, Department of Economics.
- Tom D. Holden, 2023.
"Existence and Uniqueness of Solutions to Dynamic Models with Occasionally Binding Constraints,"
The Review of Economics and Statistics, MIT Press, vol. 105(6), pages 1481-1499, November.
- Holden, Thomas, 2016. "Existence and uniqueness of solutions to dynamic models with occasionally binding constraints," EconStor Preprints 130142, ZBW - Leibniz Information Centre for Economics.
- Holden, Tom D., 2019. "Existence and uniqueness of solutions to dynamic models with occasionally binding constraints," EconStor Preprints 144570, ZBW - Leibniz Information Centre for Economics, revised 2019.
- Holden, Tom D., 2022. "Existence and uniqueness of solutions to dynamic models with occasionally binding constraints," Discussion Papers 09/2022, Deutsche Bundesbank.
- Paternesi Meloni, Walter & Romaniello, Davide & Stirati, Antonella, 2022. "Inflation and the NAIRU: assessing the role of long-term unemployment as a cause of hysteresis," Economic Modelling, Elsevier, vol. 113(C).
- Aguiar-Conraria, Luís & Martins, Manuel M.F. & Soares, Maria Joana, 2023. "The Phillips curve at 65: Time for time and frequency," Journal of Economic Dynamics and Control, Elsevier, vol. 151(C).
- Daniel Kienzler & Kai D. Schmid, 2014.
"Hysteresis in Potential Output and Monetary Policy,"
Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(4), pages 371-396, September.
- Kienzler, Daniel & Schmid, Kai D., 2013. "Hysteresis in Potential Output and Monetary Policy," Working Papers on Finance 1328, University of St. Gallen, School of Finance.
- Dubois, Loick & Sahuc, Jean-Guillaume & Vermandel, Gauthier, 2025.
"A general equilibrium approach to carbon permit banking,"
Journal of Environmental Economics and Management, Elsevier, vol. 129(C).
- Loick Dubois & Jean-Guillaume Sahuc & Gauthier Vermandel, 2024. "A General Equilibrium Approach to Carbon Permit Banking," Working papers 971, Banque de France.
- Jean-Guillaume Sahuc & Loick Dubois & Gauthier Vermandel, 2025. "A General Equilibrium Approach to Carbon Permit Banking," Working Papers hal-04861311, HAL.
- : Dubois, Loick & Sahuc, Jean-Guillaume & Vermandel, Gauthier, 2024. "A General Equilibrium Approach to Carbon Permit Banking," Single Market Economics Papers WP2024/20, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (European Commission), Chief Economist Team.
- Jean-Guillaume Sahuc & Loick Dubois & Gauthier Vermandel, 2025. "A General Equilibrium Approach to Carbon Permit Banking," EconomiX Working Papers 2025-5, University of Paris Nanterre, EconomiX.
- Karadi, Peter & Nakov, Anton, 2021.
"Effectiveness and addictiveness of quantitative easing,"
Journal of Monetary Economics, Elsevier, vol. 117(C), pages 1096-1117.
- Karadi, Peter & Nakov, Anton, 2020. "Effectiveness and Addictiveness of Quantitative Easing," CEPR Discussion Papers 14951, C.E.P.R. Discussion Papers.
- N. Gregory Mankiw & Ricardo Reis, 2002.
"Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1295-1328.
- N. Gregory Mankiw & Ricardo Reis, 2001. "Sticky information versus sticky prices: a proposal to replace the New-Keynesian Phillips curve," Proceedings, Federal Reserve Bank of San Francisco, issue Jun.
- N. Gregory Mankiw & Ricardo Reis, 2001. "Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve," Harvard Institute of Economic Research Working Papers 1922, Harvard - Institute of Economic Research.
- N. Gregory Mankiw & Ricardo Reis, 2001. "Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve," NBER Working Papers 8290, National Bureau of Economic Research, Inc.
- Mankiw, N. Gregory & Reis, Ricardo, 2002. "Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve," Scholarly Articles 3415324, Harvard University Department of Economics.
- Lindé, Jesper & Smets, Frank & Wouters, Rafael, 2016.
"Challenges for Central Banks´ Macro Models,"
Working Paper Series
323, Sveriges Riksbank (Central Bank of Sweden).
- Linde, Jesper & Smets, Frank & Wouters, Rafael, 2016. "Challenges for Central Banks' Macro Models," CEPR Discussion Papers 11405, C.E.P.R. Discussion Papers.
- Ronald Schettkat & Rongrong Sun, 2009.
"Monetary policy and European unemployment,"
Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(1), pages 94-108, Spring.
- Ronald Schettkat & Rongrong Sun, 2008. "Monetary Policy and European Unemployment," Schumpeter Discussion Papers sdp08002, Universitätsbibliothek Wuppertal, University Library.
- Ronald Schettkat & Rongrong Sun, 2009. "Nicht zu früh bremsen! - Der Einfluss der Geldpolitik auf die langfristige Wirtschaftsentwicklung in Deutschland und den USA-," Schumpeter Discussion Papers sdp09003, Universitätsbibliothek Wuppertal, University Library.
- Gancia, Gino & Zilibotti, Fabrizio, 2005.
"Horizontal Innovation in the Theory of Growth and Development,"
Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170,
Elsevier.
- Gino Gancia & Fabrizio Zilibotti, 2005. "Horizontal innovation in the theory of growth and development," Economics Working Papers 831, Department of Economics and Business, Universitat Pompeu Fabra.
- Gino Gancia & Fabrizio Zilibotti, 2015. "Horizontal Innovation in the Theory of Growth and Development," Working Papers 200, Barcelona School of Economics.
- Marika Karanassou & Hector Sala & Dennis J. Snower, 2010.
"Phillips Curves And Unemployment Dynamics: A Critique And A Holistic Perspective,"
Journal of Economic Surveys, Wiley Blackwell, vol. 24(1), pages 1-51, February.
- Karanassou, Marika & Sala, Hector & Snower, Dennis J., 2006. "Phillips Curves and Unemployment Dynamics: A Critique and a Holistic Perspective," IZA Discussion Papers 2265, Institute of Labor Economics (IZA).
- Marika Karanassou & Hector Sala & Dennis J. Snower, 2008. "Phillips Curves and Unemployment Dynamics: A Critique and a Holistic Perspective," Discussion Papers 2008-08, School of Economics, The University of New South Wales.
- Karanassou, Marika & Sala, Héctor & Snower, Dennis J., 2008. "Phillips Curves and unemployment dynamics: a critique and a holistic perspective," Kiel Working Papers 1441, Kiel Institute for the World Economy (IfW Kiel).
- Marika Karanassou & Hector Sala & Dennis J. Snower, 2006. "Phillips Curves and Unemployment Dynamics: A Critique and a Holistic Perspective," Working Papers 573, Queen Mary University of London, School of Economics and Finance.
- Pelin Ilbas & Øistein Røisland & Tommy Sveen, 2013.
"The Influence of the Taylor rule on US monetary policy,"
Working Paper Research
241, National Bank of Belgium.
- Pelin Ilbas & Øistein Røisland & Tommy Sveen, 2013. "The influence of the Taylor rule on US monetary policy," Working Paper 2013/04, Norges Bank.
- J. Peter Neary, 2009.
"Putting the “New” into New Trade Theory: Paul Krugman's Nobel Memorial Prize in Economics,"
Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(2), pages 217-250, June.
- Neary, Peter, 2009. "Putting the "New" into New Trade Theory: Paul Krugman's Nobel Memorial Prize in Economics," CEPR Discussion Papers 7231, C.E.P.R. Discussion Papers.
- Peter Neary, 2009. "Putting the "New" into New Trade Theory: Paul Krugman's Nobel Memorial Prize in Economics," Economics Series Working Papers 423, University of Oxford, Department of Economics.
- de Groot, Oliver & Haas, Alexander, 2023.
"The signalling channel of negative interest rates,"
Journal of Monetary Economics, Elsevier, vol. 138(C), pages 87-103.
- Oliver de Groot & Alexander Haas, 2019. "The Signalling Channel of Negative Interest Rates," Working Papers 201905, University of Liverpool, Department of Economics.
- de Groot, Oliver & Haas, Alexander, 2020. "The Signalling Channel of Negative Interest Rates," CEPR Discussion Papers 14268, C.E.P.R. Discussion Papers.
- de Groot, Oliver & Haas, Alexander, 2019. "The Signalling Channel of Negative Interest Rates," MPRA Paper 95479, University Library of Munich, Germany.
- Oliver de Groot & Alexander Haas, 2021. "The signalling channel of negative interest rates," Economics Series Working Papers 956 JEL classification: E, University of Oxford, Department of Economics.
- Oliver de Groot & Alexander Haas, 2022. "The Signalling Channel of Negative Interest Rates," Discussion Papers of DIW Berlin 1990, DIW Berlin, German Institute for Economic Research.
- Harrison, Ann & Rodríguez-Clare, Andrés, 2010.
"Trade, Foreign Investment, and Industrial Policy for Developing Countries,"
Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4039-4214,
Elsevier.
- Ann Harrison & Andrés Rodríguez-Clare, 2009. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," NBER Working Papers 15261, National Bureau of Economic Research, Inc.
More about this item
Keywords
Demand shocks; Monetary policy; Hysteresis;All these keywords.
JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
NEP fields
This paper has been announced in the following NEP Reports:- NEP-CBA-2023-01-02 (Central Banking)
- NEP-MON-2023-01-02 (Monetary Economics)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedgfe:2022-80. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ryan Wolfslayer ; Keisha Fournillier (email available below). General contact details of provider: https://edirc.repec.org/data/frbgvus.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.