Persistent stochastic shocks in a new Keynesian model with uncertainty /

Persistent stochastic shocks in a new Keynesian model with uncertainty /

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Bibliographic Details
Author / Creator:	Kranz, Tobias, author.
Imprint:	Wiesbaden, Germany : Springer Gabler, [2017] ©2017
Description:	1 online resource (xiii, 72 pages) : illustrations
Language:	English
Series:	BestMasters BestMasters.
Subject:	Keynesian economics -- Mathematical models. Uncertainty -- Mathematical models. Keynesian economics -- Mathematical models. Uncertainty -- Mathematical models. Academic theses. Academic theses.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/11895012

Hidden Bibliographic Details
ISBN:	9783658156398 3658156392 9783658156381 3658156384
Notes:	Includes bibliographical references. Online resource; title from PDF title page (EBSCO, viewed March 28, 2017).
Summary:	The book introduces the New Keynesian framework, historically through a literature overview and through a step-by-step derivation of a New Keynesian Phillips curve, an intertemporal IS curve, and a targeting rule for the central bank. This basic version is then expanded by introducing cost and demand shocks and uncertainty. The latter enters the model via second order Taylor approximation instead of linearization. Bringing all equations together results in an equilibrium condition which is simulated with a wide range of parameter values, including possible crisis scenarios. The author finds that accounting for uncertainty -- regarding growth and inflation expectations -- can lead to lower nominal interest rates set by the central bank. Contents · Historical recapitulation of DSGE Modeling · Derivation of a basic New Keynesian Model · Augmentation with persistent shocks and uncertainty · Comparative statics and a wide range of numerical simulations · Mathematical concepts and background information in the appendix Target Groups · Researchers and graduate students in macroeconomics and monetary policy · Managers and practitioners in the fields of monetary economics The Author Tobias Kranz obtained his Master of Science degree in Economics at the University of Trier in 2015. He has been working as postgraduate at the chair of Empirical Economics (University of Trier) since 2016.
Standard no.:	10.1007/978-3-658-15639-8

Description
Summary:	The book introduces the New Keynesian framework, historically through a literature overview and through a step-by-step derivation of a New Keynesian Phillips curve, an intertemporal IS curve, and a targeting rule for the central bank. This basic version is then expanded by introducing cost and demand shocks and uncertainty. The latter enters the model via second order Taylor approximation instead of linearization. Bringing all equations together results in an equilibrium condition which is simulated with a wide range of parameter values, including possible crisis scenarios. The author finds that accounting for uncertainty - regarding growth and inflation expectations - can lead to lower nominal interest rates set by the central bank.
Physical Description:	1 online resource (xiii, 72 pages) : illustrations
Bibliography:	Includes bibliographical references.
ISBN:	9783658156398 3658156392 9783658156381 3658156384