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Credit Spreads and Monetary Policy
We consider the desirability of modifying a standard Taylor rule for a central bank's interest rate policy to incorporate either an adjustment for changes in interest rate spreads (as proposed byExpand
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The Central-Bank Balance Sheet as an Instrument of Monetary Policy
While many analyses of monetary policy consider only the adjustment of a central bank’s target for a short-term nominal interest rate, other dimensions of policy have recently been of greaterExpand
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The Macroeconomic Effects of Large-Scale Asset Purchase Programs
The effects of asset purchase programs on macroeconomic variables are likely to be moderate. We reach this conclusion after simulating the impact of the US Federal Reserve second Large-Scale AssetExpand
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Credit Frictions and Optimal Monetary Policy
We extend the basic (representative-household) New Keynesian [NK] model of the monetary transmission mechanism to allow for a spread between the interest rate available to savers and borrowers, thatExpand
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Basel III: Long�?Term Impact on Economic Performance and Fluctuations
We assess the long-term economic impact of the new regulatory standards (the Basel III reform), answering the following questions: 1) What is the impact of the reform on long-term economicExpand
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The Macroeconomic Effects of Large�?Scale Asset Purchase Programmes
The effects of asset purchase programs on macroeconomic variables are likely to be moderate. We reach this conclusion after simulating the impact of the Federal Reserve’s second large-scale assetExpand
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Conventional and Unconventional Monetary Policy
We extend a standard New Keynesian model both to incorporate heterogeneity in spending opportunities along with two sources of (potentially time-varying) credit spreads and to allow a role for theExpand
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Correlated Disturbances and U.S. Business Cycles
The dynamic stochastic general equilibrium (DSGE) models used to study business cycles typically assume that exogenous disturbances are independent first-order autoregressions. This paper relaxesExpand
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Why so slow? A gradual return for interest rates
Short-term interest rates in the United States have been very low since the financial crisis. Projections of the natural rate of interest indicate that a gradual return of short-term interest ratesExpand
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Rare Shocks, Great Recessions
We estimate a DSGE model where rare large shocks can occur, by replacing the commonly used Gaussian assumption with a Student-t distribution. Results from the Smets and Wouters (2007) model estimatedExpand
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