Massimo Rostagno

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Historical data and model simulations support the following conclusion. In‡ation is low during stock market booms, so that an interest rate rule that is too narrowly focused on in‡ation destabilizes asset markets and the broader economy. Adjustments to the interest rate rule can remove this source of welfare-reducing instability. For example, allowing an(More)
Many explanations for home or local bias rely on information asymmetry: investors know more about their home assets. A criticism of these theories is that asymmetry should disappear when information is tradable. This criticism is flawed. If investors have asymmetric prior beliefs, but choose how to allocate limited learning capacity before investing, they(More)
We augment a standard monetary DSGE model to include financial markets, and fit the model to EA and US data. The empirical results draw attention to a new shock and to an important new nominal rigidity. The new shock originates in the financial sector and accounts for a significant portion of business cycle fluctuations. We do a detailed study of the role(More)
1 The views expressed in this paper are our own and not necessarily those of the European Central Bank or its Governing Council. NOTE: This Working Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. In 2011 all ECB(More)
Recent studies of soil–landscape relationships in northeastern Patagonia identified fibrous-clay minerals in calcic and petrocalcic horizons developed on old fluvio-glacial plains called “Rodados Patagónicos” (RP). The objectives of this study were: i) to evaluate the occurrence of fibrous-clay minerals in the arid soil environment, and ii) to establish the(More)
In this paper, the conceptual and empirical bases for the role of monetary aggregates in monetary policy making are reviewed. It is argued that money can act as a useful information variable in a world in which a number of indicators are imperfectly observed. In this context, the paper discusses the role of a reference value or benchmark for money growth in(More)