The Power of Forward Guidance Revisited

By A. McKay, Emi Nakamura, Jón Steinsson. 2016

563 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/ef37a09c53b088fad9a62056b4c39c1ea5387352

Citations in the corpus

• Monetary Policy, Bounded Rationality, and Incomplete Markets (2019, unknown): “We set the fraction of outside liquidity to output at 1.44 (as in McKay et al. 2016).10 The implied fraction of borrowing-constrained agents in the steady state is then 14.7%.”
• On DSGE Models (2018, unknown): “12 For a review of the DSGE models used in the policy process at the ECB, see Smets et al. (2010). Carabenciov et al.”
• Transmission of Monetary Policy with Heterogeneity in Household Portfolios (2018, unknown): “5See Guerrieri and Lorenzoni (2011), Oh and Reis (2012), Gornemann et al. (2012), Ravn and Sterk (2013), Den Haan et al. (2014), Auclert (2015), Bayer et al. (2015), Werning (2015), McKay and Reis (2016), McKay et al. (2016), and Kaplan et al. (2016).”
• Precautionary Savings, Illiquid Assets, and the Aggregate Consequences of Shocks to Household Income Risk (2019, unknown): “8Further examples of the New Keynesian incomplete markets literature are Auclert (2015), Challe and Ragot (2016), McKay, Nakamura, and Steinsson (2016), McKay and Reis (2016), Werning (2015), all of which, however, build on a single-asset framework.”
• Monetary Policy in a Low Interest Rate World (2017, unknown): “In particular, the benefits of temporary overshooting rely on forward-looking behavior that may not be a good representation of actual behavior (McKay, Nakamura, and Steinsson 2016; Gabaix 2016; Kiley 2016).”
• The Intertemporal Keynesian Cross (2018, unknown): “This assumption allows us to partial out the effects of monetary policy so that we can focus on the potential effects of heterogeneity 3In recent contributions, Koby and Wolf (2018) use this methodology to study aggregate investment in models with firm heterogeneity, while Guren, McKay, Nakamura and”
• Monetary Policy According to HANK (2018, unknown): “Recent research by McKay et al. (2015) and Werning (2015) examines to what extent this finding carries over to economies with incomplete markets.”
• The Safety Trap (2017, unknown): “13It is the latter feature that makes this debt “short-term,” since its value remains constant over time as its coupons vary with the riskless rate.”
• The Discounted Euler Equation: A Note (2016, unknown): “Figure 1 shows that the discounted Euler equation—equation (1)—with a = 0.97 and f = 3/4 provides a good approximation to the response of output to a real interest rate shock 20 quarters in the future in the baseline incomplete markets model analysed in McKay et al. (2016).”