Perfect Foresight Cycles in a Marxian-Keynesian Model of Accumulation With Money

1991 ◽  
pp. 306-319
Author(s):  
D. K. Foley
Keyword(s):  
Perfect Foresight ◽  
Keynesian Model

scholarly journals Using the Sequence‐Space Jacobian to Solve and Estimate Heterogeneous‐Agent Models

Econometrica ◽  
2021 ◽  
Vol 89 (5) ◽  
pp. 2375-2408 ◽  
Author(s):  
Adrien Auclert ◽  
Bence Bardóczy ◽  
Matthew Rognlie ◽  
Ludwig Straub
Keyword(s):  
General Equilibrium ◽  
Sequence Space ◽  
New Keynesian ◽  
New Keynesian Model ◽  
Heterogeneous Agent ◽  
Aggregate Shocks ◽  
Perfect Foresight ◽  
Keynesian Model ◽  
Derivatives Of ◽  
Heterogeneous Agent Models

We propose a general and highly efficient method for solving and estimating general equilibrium heterogeneous‐agent models with aggregate shocks in discrete time. Our approach relies on the rapid computation of sequence‐space Jacobians—the derivatives of perfect‐foresight equilibrium mappings between aggregate sequences around the steady state. Our main contribution is a fast algorithm for calculating Jacobians for a large class of heterogeneous‐agent problems. We combine this algorithm with a systematic approach to composing and inverting Jacobians to solve for general equilibrium impulse responses. We obtain a rapid procedure for likelihood‐based estimation and computation of nonlinear perfect‐foresight transitions. We apply our methods to three canonical heterogeneous‐agent models: a neoclassical model, a New Keynesian model with one asset, and a New Keynesian model with two assets.

scholarly journals On the Limits of Macroprudential Policy

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Marcin Kolasa
Keyword(s):  
Monetary Policy ◽  
Policy Instruments ◽  
New Keynesian ◽  
Output Volatility ◽  
Macroprudential Policy ◽  
Collateral Constraints ◽  
Keynesian Model ◽  
Additional Stabilization ◽  
The Interest Rate

AbstractThis paper studies how macroprudential policy tools applied to the housing market can complement the interest rate-based monetary policy in achieving one additional stabilization objective, defined as keeping either economic activity or credit at some exogenous (and possibly time-varying) levels. We show analytically in a canonical New Keynesian model with housing and collateral constraints that using the loan-to-value (LTV) ratio, tax on credit or tax on property as additional policy instruments does not resolve the inflation-output volatility tradeoff. Perfect targeting of inflation and credit with monetary and macroprudential policy is possible only if the role of housing debt in the economy is sufficiently small. The identified limits to the considered policies are related to their predominantly intertemporal impact on decisions made by financially constrained agents, making them poor complements to monetary policy, which also operates at an intertemporal margin. These limits can be overcome if macroprudential policy is instead designed such that it sufficiently redistributes income between savers and borrowers.

scholarly journals Information Use and the Condorcet Jury Theorem

Mathematics ◽  
2021 ◽  
Vol 9 (10) ◽  
pp. 1098
Author(s):  
Keiichi Morimoto
Keyword(s):  
Monetary Policy ◽  
Voting Behavior ◽  
Imperfect Information ◽  
Information Use ◽  
Information Aggregation ◽  
New Keynesian ◽  
Strategic Complementarity ◽  
Keynesian Model ◽  
Jury Theorem

Using a simple model of a coordination game, this paper explores how the information use of individuals affects an optimal committee size. Although enlarging the committee promotes information aggregation, it also stimulates the members’ coordination motive and distorts their voting behavior through higher-order beliefs. On the determination of a finite optimal committee size, the direction and degree of strategic interactions matter. When the strategic complementarity among members is strong, a finite optimal committee size exists. In contrast, it does not exist under strategic substitution. This mechanism is applied to the design of monetary policy committees in a New Keynesian model in which a committee conducts monetary policy under imperfect information.

scholarly journals Optimal control in the New Keynesian model with monetary and fiscal policy interactions

2021 ◽  
Vol 1864 (1) ◽  
pp. 012040
Author(s):  
T A Alexeeva ◽  
N V Kuznetsov ◽  
T N Mokaev ◽  
I A Polshchikova
Keyword(s):  
Optimal Control ◽  
Fiscal Policy ◽  
New Keynesian ◽  
New Keynesian Model ◽  
Policy Interactions ◽  
Keynesian Model ◽  
Monetary And Fiscal Policy

A NOTE ON A “KEYNESIAN” MODEL OF AGGREGATE DEMAND

1969 ◽  
Vol 24 (1) ◽  
pp. 101-103
Author(s):  
F. E. Banks
Keyword(s):  
Aggregate Demand ◽  
Keynesian Model
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