Arbeitspapier
Disagreement and monetary policy
Time-variation in disagreement about inflation expectations is a stylized fact in surveys, but little is known on how disagreement interacts with the efficacy of monetary policy. This paper fills this gap in providing theoretical predictions of monetary policy shocks for different levels of disagreement and testing these empirically. When disagreement is high, a dispersed information New Keynesian model predicts that a contractionary monetary policy shock leads to a short-run rise in inflation and inflation expectations, whereas both decline when disagreement is low. Estimating a smooth-transition model on U.S. data shows significantly different responses in inflation and inflation expectations consistent with theory.
- ISBN
-
978-3-95729-399-2
- Sprache
-
Englisch
- Erschienen in
-
Series: Bundesbank Discussion Paper ; No. 29/2017
- Klassifikation
-
Wirtschaft
Model Evaluation, Validation, and Selection
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Price Level; Inflation; Deflation
Business Fluctuations; Cycles
Monetary Policy
- Thema
-
disagreement
dispersed information
disanchoring of inflation expectations
monetary policy transmission
state-dependent effects of monetary policy
local projections
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Falck, Elisabeth
Hoffmann, Mathias
Hürtgen, Patrick
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsche Bundesbank
- (wo)
-
Frankfurt a. M.
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Falck, Elisabeth
- Hoffmann, Mathias
- Hürtgen, Patrick
- Deutsche Bundesbank
Entstanden
- 2017
Ähnliche Objekte (12)
Inflation expectations, disagreement, and monetary policy
International financial markets' influence on the welfare performance of alternative exchange rate regimes
Transmission of nominal exchange rate changes to export prices and trade flows and implications for exchange rate policy
Do exchange rates absorb demand shocks at the ZLB?
Integration of financial markets and national price levels: the role of exchange rate volatility
Deciding to peg the exchange rate in developing countries: the role of private-sector debt
Abgangszeugnis Mathias Hoffmann
Grenzflächenspannungen in nanokristallinem Palladium
Auswanderungsgesuch Hoffmann Mathias, Hohenschwärz, nach Amerika
The timing and magnitude of exchange rate overshooting
The home bias in equities and distribution costs
International capital flows, external assets and output volatility
Inflation expectations, disagreement, and monetary policy
International financial markets' influence on the welfare performance of alternative exchange rate regimes
Transmission of nominal exchange rate changes to export prices and trade flows and implications for exchange rate policy
Do exchange rates absorb demand shocks at the ZLB?
Integration of financial markets and national price levels: the role of exchange rate volatility
Deciding to peg the exchange rate in developing countries: the role of private-sector debt
Abgangszeugnis Mathias Hoffmann
Grenzflächenspannungen in nanokristallinem Palladium
Auswanderungsgesuch Hoffmann Mathias, Hohenschwärz, nach Amerika
The timing and magnitude of exchange rate overshooting
The home bias in equities and distribution costs
International capital flows, external assets and output volatility
Inflation expectations, disagreement, and monetary policy
International financial markets' influence on the welfare performance of alternative exchange rate regimes
Transmission of nominal exchange rate changes to export prices and trade flows and implications for exchange rate policy
Do exchange rates absorb demand shocks at the ZLB?
Integration of financial markets and national price levels: the role of exchange rate volatility
Deciding to peg the exchange rate in developing countries: the role of private-sector debt
Abgangszeugnis Mathias Hoffmann
Grenzflächenspannungen in nanokristallinem Palladium
Auswanderungsgesuch Hoffmann Mathias, Hohenschwärz, nach Amerika
The timing and magnitude of exchange rate overshooting
The home bias in equities and distribution costs