The Comovement Between Real Activity and Prices in the G7

Haan, Wouter J. Den; Sumner, Steven

doi:10.2139/ssrn.346461

Cited by 15 publications

(8 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…12 After the portfolio choices, the currency market is closed. Namely, the household can no longer re-adjust its currency portfolio until the next period.…”

Section: Householdsmentioning

confidence: 99%

Inflation dynamics: A cross-country investigation

Wang

Wen

2007

Journal of Monetary Economics

View full text Add to dashboard Cite

We document that "persistent and lagged" in ‡ation (with respect to output) is a worldwide phenomenon in that these short-run in ‡ation dynamics are highly synchronized across countries. In particular, the average cross-country correlation of in ‡ation is signi…cantly and systematically stronger than that of output, while the cross-country correlation of money growth is essentially zero. We investigate whether standard monetary models driven by monetary shocks are consistent with the empirical facts. We …nd that neither the new Keynesian sticky-price model nor the sticky-information model can fully explain the data. An independent contribution of the paper is to provide a simple solution technique for solving general equilibrium models with sticky information.

show abstract

“…12 After the portfolio choices, the currency market is closed. Namely, the household can no longer re-adjust its currency portfolio until the next period.…”

Section: Householdsmentioning

confidence: 99%

Inflation dynamics: A cross-country investigation

Wang

Wen

2007

Journal of Monetary Economics

View full text Add to dashboard Cite

show abstract

“…Few studies have used these methods to study real wage cyclicality so far. The exception is the short note by Den Haan and Sumner (2002), where real wages appear pro-cyclical in the G7 countries and more so at longer horizons. In a related paper Lamo et al (2007) focus on the cyclicality of consumption, compensation and employment in the public sector.…”

Section: Introductionmentioning

confidence: 99%

Real wages over the business cycle: OECD evidence from the time and frequency domains

Messina

Strozzi

Turunen

2009

Journal of Economic Dynamics and Control

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper can be downloaded without charge from http://www.ecb.europa.eu or from the Social Science Research Network electronic library at http://ssrn.com/abstract_id=1324567. Terms of use: Documents inIn 2009 all ECB publications feature a motif taken from the €200 banknote. REAL WAGES OVER THE BUSINESS CYCLE OECD EVIDENCE FROM THE Wage Dynamics NetworkThis paper contains research conducted within the Wage Dynamics Network (WDN). The WDN is a research network consisting of economists from the European Central Bank (ECB) and the national central banks (NCBs) of the EU countries. The WDN aims at studying in depth the features and sources of wage and labour cost dynamics and their implications for monetary policy. The specific objectives of the network are: i) identifying the sources and features of wage and labour cost dynamics that are most relevant for monetary policy and ii) clarifying the relationship between wages, labour costs and prices both at the firm and macro-economic level.The WDN is chaired by Frank Smets (ECB). Giuseppe Bertola (Università di Torino) and Julian Messina (Universitat de Girona) act as external consultants and Ana Lamo (ECB) as Secretary.The refereeing process of this paper has been co-ordinated by a team composed of Gabriel Fagan (ECB, chairperson), Philip Vermeulen (ECB), Giuseppe Bertola, Julian Messina, Jan Babecký (CNB), Hervé Le Bihan (Banque de France) and Thomas Mathä (Banque centrale du Luxembourg).The paper is released in order to make the results of WDN research generally available, in preliminary form, to encourage comments and suggestions prior to final publication. The views expressed in the paper are the author's own and do not necessarily reflect those of the ESCB. ECB Working Paper Series No 1003February 2009 Abstract 4 Non-technical summary 5

show abstract

“…6 This method calculates forecast errors at different horizons from an estimated VAR that includes at least the pair of variables whose comovement we are interested in studying. As mentioned above, we include four variables in the VAR: the Fed rate, inflation, output gap and deficit.…”

Section: The Comovement Between Fed Rate and Deficitmentioning

confidence: 99%

The comovement between monetary and fiscal policy instruments during the post-war period in the U.S.

Vázquez

2008

International Review of Economics & Finance

View full text Add to dashboard Cite

This paper empirically studies the dynamic relationship between monetary and fiscal policies by analyzing the comovements between the Fed funds rate and the primary deficit/output ratio. Simple economic thinking establishes that a negative correlation between Fed rate and deficit arises whenever the two policy authorities share a common stabilization objective. However, when budget balancing concerns lead to a drastic deficit reduction the Fed may reduce the Fed rate in order to smooth the impact of fiscal policy, which results in a positive correlation between these two policy instruments. The empirical results show (i) a significant negative comovement between Fed rate and deficit and (ii) that deficit and output gap Granger-cause the Fed funds rate during the post-Volcker era, but the opposite is not true.

show abstract

The Comovement Between Real Activity and Prices in the G7

Cited by 15 publications

References 16 publications

Inflation dynamics: A cross-country investigation

Inflation dynamics: A cross-country investigation

Real wages over the business cycle: OECD evidence from the time and frequency domains

The comovement between monetary and fiscal policy instruments during the post-war period in the U.S.

Contact Info

Product

Resources

About