US on Alexander Kriwoluzky

Monetary Policy and the Transaction Role of Money in the US

Tue, 01 Sep 2015 00:00:00 +0000

Abstract

The declining importance of money in transactions can explain the well-known fact that US interest rate policy was passive in the pre-Volcker period and active after 1982. We generalise a standard cashless New Keynesian model (Woodford, 2003) by incorporating an explicit transaction role for money. In the pre-Volcker period, we estimate that money did play an important role and determinacy required a passive interest rate policy. However, after 1982, money no longer played an important role in facilitating transactions. Correspondingly, the conventional view prevails and an active policy ensured equilibrium determinacy.

Toward a Taylor rule for fiscal policy

Tue, 01 Apr 2014 00:00:00 +0000

Abstract

In DSGE models, fiscal policy is typically described by simple rules in which tax rates respond to the level of output. We show that there is only weak empirical evidence in favor of such specifications in US data. Instead, the cyclical movements of labor and capital income tax rates are better described by a contemporaneous response to hours worked and investment, respectively. We show that conditioning on these variables is also desirable from a normative perspective as it significantly improves welfare relative to output-based rules.

Reconciling narrative monetary policy disturbances with structural VAR model shocks?

Fri, 01 Nov 2013 00:00:00 +0000

Abstract

Structural VAR studies disagree with narrative accounts about the history of monetary policy disturbances. We investigate whether employing the narrative monetary shocks as a proxy variable in a VAR model aligns both shock series. We find that it does not.

Citation

Kliem, Martin, and Alexander Kriwoluzky (2013). “Reconciling narrative monetary policy disturbances with structural VAR model shocks?” Economics Letters 121(2): 247–251. [web:402][web:403]


@article{KK2013,
title = {Reconciling narrative monetary policy disturbances with structural VAR model shocks?},
author = {Martin Kliem and Alexander Kriwoluzky},
journal = {Economics Letters},
volume = {121},
number = {2},
pages = {247-251},
year = {2013},
issn = {0165-1765},
doi = {https://doi.org/10.1016/j.econlet.2013.08.006},
keywords = {Vector autoregression model, Monetary policy shocks, Narrative identification},
}