Source Themes

This paper presents theoretical solution to the forward guidance puzzle amid adaptive expectations. It argues that the effectiveness of forward guidance is endogenous and argues that central bank action can determine expectation formation and establish or destroy credibility of forward guidance.

This paper presents results from a model forecast comparison exercise.

This paper presents theoretical and empirical evidence on the effectiveness of macroprudential policy, with special emphasis on the European Union. We find clear evidence that macroprudential policies have a positive impact on financial stability, and long-term growth.

This paper presents theoretical and empirical evidence on the effectiveness of macroprudential policy, with special emphasis on the European Union. We find clear evidence that macroprudential policies have a positive impact on financial stability, and long-term growth.

This paper introduces the Hamiltonian Monte Carlo (HMC) estimator to DSGE models.

his paper identifies the impact of unconventional monetary policy using narrative sign restrictions and assesses its merits at the zero lower bound (ZLB) in a calibrated DSGE with endogenous riskiness driven financial frictions and counter-cyclical bank capital regulation. It finds that overall riskiness of the banking sector declines, as signalling adn bank capital relief channels dominate the increased risk taking of banks in response to QE.