Forward guidance contracts

No Thumbnail Available
Files
There are no files associated with this item.
Date
2019
Authors
Gersbach, Hans
Liu, Yulin
Editors
Contact
Journal ISSN
Electronic ISSN
ISBN
Bibliographical data
Publisher
Series
URI (citable link)
DOI (citable link)
10.1017/S1365100518000093
ArXiv-ID
International patent number
Link to the license
oops
EU project number
Project
Open Access publication
Collections
Wirtschaftswissenschaften
Restricted until
Title in another language
Research Projects
Organizational Units
Journal Issue
Publication type
Journal article
Publication status
Published
Published in
Macroeconomic Dynamics ; 23 (2019), 8. - pp. 3386-3423. - ISSN 1365-1005. - eISSN 1469-8056
Abstract
We examine “Forward Guidance Contracts,” which penalize central bankers for choosing high interest rates. We integrate those contracts into the New Keynesian Framework and show that they can be used to overcome a liquidity trap. Moreover, although the government takes only a share of the social benefits into account when it has to decide whether to offer the contract, we demonstrate that for plausible parameter values the government will always find it desirable to offer the contract in a liquidity trap but not in normal times. Finally, we show that the optimal duration of such contracts is typically very short.
Summary in another language
Subject (DDC)
330 Economics
Keywords
Forward Guidance, Zero Lower Bound, Central Banks, Incentive Contracts, Transparency
Conference
Review
undefined / . - undefined, undefined. - (undefined; undefined)
Cite This
ISO 690GERSBACH, Hans, Volker HAHN, Yulin LIU, 2019. Forward guidance contracts. In: Macroeconomic Dynamics. 23(8), pp. 3386-3423. ISSN 1365-1005. eISSN 1469-8056. Available under: doi: 10.1017/S1365100518000093
BibTex
@article{Gersbach2019-12Forwa-45132,
  year={2019},
  doi={10.1017/S1365100518000093},
  title={Forward guidance contracts},
  number={8},
  volume={23},
  issn={1365-1005},
  journal={Macroeconomic Dynamics},
  pages={3386--3423},
  author={Gersbach, Hans and Hahn, Volker and Liu, Yulin}
}
RDF
<rdf:RDF
    xmlns:dcterms="http://purl.org/dc/terms/"
    xmlns:dc="http://purl.org/dc/elements/1.1/"
    xmlns:rdf="http://www.w3.org/1999/02/22-rdf-syntax-ns#"
    xmlns:bibo="http://purl.org/ontology/bibo/"
    xmlns:dspace="http://digital-repositories.org/ontologies/dspace/0.1.0#"
    xmlns:foaf="http://xmlns.com/foaf/0.1/"
    xmlns:void="http://rdfs.org/ns/void#"
    xmlns:xsd="http://www.w3.org/2001/XMLSchema#" > 
  <rdf:Description rdf:about="https://kops.uni-konstanz.de/server/rdf/resource/123456789/45132">
    <dc:language>eng</dc:language>
    <dc:creator>Gersbach, Hans</dc:creator>
    <dc:contributor>Liu, Yulin</dc:contributor>
    <dcterms:abstract xml:lang="eng">We examine “Forward Guidance Contracts,” which penalize central bankers for choosing high interest rates. We integrate those contracts into the New Keynesian Framework and show that they can be used to overcome a liquidity trap. Moreover, although the government takes only a share of the social benefits into account when it has to decide whether to offer the contract, we demonstrate that for plausible parameter values the government will always find it desirable to offer the contract in a liquidity trap but not in normal times. Finally, we show that the optimal duration of such contracts is typically very short.</dcterms:abstract>
    <dcterms:title>Forward guidance contracts</dcterms:title>
    <dc:contributor>Hahn, Volker</dc:contributor>
    <dc:creator>Liu, Yulin</dc:creator>
    <dc:date rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2019-02-20T14:13:18Z</dc:date>
    <foaf:homepage rdf:resource="http://localhost:8080/"/>
    <dcterms:issued>2019-12</dcterms:issued>
    <dcterms:isPartOf rdf:resource="https://kops.uni-konstanz.de/server/rdf/resource/123456789/46"/>
    <dspace:isPartOfCollection rdf:resource="https://kops.uni-konstanz.de/server/rdf/resource/123456789/46"/>
    <dcterms:available rdf:datatype="http://www.w3.org/2001/XMLSchema#dateTime">2019-02-20T14:13:18Z</dcterms:available>
    <dc:creator>Hahn, Volker</dc:creator>
    <void:sparqlEndpoint rdf:resource="http://localhost/fuseki/dspace/sparql"/>
    <bibo:uri rdf:resource="https://kops.uni-konstanz.de/handle/123456789/45132"/>
    <dc:contributor>Gersbach, Hans</dc:contributor>
  </rdf:Description>
</rdf:RDF>
Internal note
xmlui.Submission.submit.DescribeStep.inputForms.label.kops_note_fromSubmitter
Contact
URL of original publication
Test date of URL
Examination date of dissertation
Method of financing
Comment on publication
Alliance license
Corresponding Authors der Uni Konstanz vorhanden
International Co-Authors
Bibliography of Konstanz
Yes
Refereed
Yes