WebDurable goods demand drives our results; forward guidance is essentially as powerful as contemporaneous interest rate changes in a version of the model without … WebJun 5, 2012 · Summary. Developing good theoretical models for applied work in economics is a difficult task and perhaps nowhere more so than in the modeling of the demand for durables, especially in aggregate time series data. On the one hand, a good model ought to be complete; on the other, the essence of a model is abstraction: choosing a small …
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WebAbstract. Durable goods attenuate the power of forward guidance. The extensive and intensive margins of durable goods demand are both more sensitive to the … Webthat forward guidance is not a powerful monetary policy tool, even in a liquidity trap. 4The logic underlying this nding is that higher prices induced by forward guidance lower the real value of government bonds, which are considered net wealth by households, inducing a negative demand response in our incomplete markets model. how to teach preschoolers about thanksgiving
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WebForward Guidance and Durable Goods Demand Alisdair McKay and Johannes F. Wieland (pp. 106-22) Persuasion with Correlation Neglect: A Full Manipulation Result Gilat Levy, Inés Moreno de Barreda and Ronny Razin (pp. 123-38) WebJul 7, 2024 · One explanation is that lockdowns and social distancing shifted consumer demand away from services toward durable goods. The other is that an increase in disposable income resulting from fiscal policy measures stimulated consumption expenditures, including those on durable goods. Webdurable goods. This yields an intertemporal trade-off in aggregate demand as encour-aging households to increase durable holdings today leaves fewer households acquiring durables going forward. Interest rates must be kept low to support demand going for-ward, so accommodative monetary policy today reduces r∗ in the future. We show that how to teach poems