| 1. |
- Adolfson, Malin, et al.
(författare)
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Optimal Money Policy in an Operational Medium-Sized DSGE Model
- 2011
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Ingår i: Journal of Money, Credit and Banking. - : Wiley. - 0022-2879 .- 1538-4616. ; 43, s. 1287-1331
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Tidskriftsartikel (refereegranskat)abstract
- We show how to construct optimal policy projections in Ramses, the Riksbank's open-economy medium-sized dynamic stochastic general equilibrium model for forecasting and policy analysis. Bayesian estimation of the parameters of the model indicates that they are relatively invariant to alternative policy assumptions and supports our view that the model parameters may be regarded as unaffected by the monetary policy specification. We discuss how monetary policy, and in particular the choice of output gap measure, affects the transmission of shocks. Finally, we use the model to assess the recent Great Recession in the world economy and how its impact on the economic development in Sweden depends on the conduct of monetary policy. This provides an illustration on how Rames incoporates large international spillover effects.
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| 2. |
- Lundin, Magnus, et al.
(författare)
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Price and Investment Dynamics : Theory and plant-level data
- 2009
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Ingår i: Journal of Money, Credit and Banking. - : Wiley. - 0022-2879 .- 1538-4616. ; 41:5, s. 907-934
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Tidskriftsartikel (refereegranskat)abstract
- We construct a model of a firm competing for market share in a customer market and making investments in physical capital. The firm is financially constrained and there are implementation lags in investment. Our model predicts that product prices should depend on costs and competitors' prices but respond weakly to demand shocks. Also, prices should be strongly related to investment. We estimate price and investment equations on panel data for Swedish manufacturing plants and find results that are qualitatively in line with these predictions, though the relation between investment and prices is stronger than predicted by our model.
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| 3. |
- Apel, Mikael, et al.
(författare)
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Microfoundations of macroeconomic price adjustment : Survey evidence from Swedish firms
- 2005
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Ingår i: Journal of Money, Credit and Banking. - : John Wiley & Sons. - 1538-4616 .- 0022-2879. ; 37:2, s. 313-338
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Tidskriftsartikel (refereegranskat)abstract
- This paper presents the results of a survey on price-setting behavior conducted on a large random sample of Swedish firms. The median firm adjusts the price once a year. State- and time-dependent price setting are about equally important. The four highest-ranked explanations for price rigidity in this study (implicit contracts, sluggish costs, explicit contracts, and the kinked demand curve) have close correspondents among the top five places in two similar large-scale surveys carried out in the UK and the U.S. The results point to the importance of the long-term relations with customers for the rigidity of prices (the estimated share of sales that go to regular customers is more than 80%).
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| 4. |
- Becker, Bo, et al.
(författare)
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Bad Times, Good Credit
- 2020
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Ingår i: Journal of Money, Credit and Banking. - : Wiley. - 0022-2879 .- 1538-4616. ; 52, s. 107-142
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Tidskriftsartikel (refereegranskat)abstract
- Banks' limited knowledge about borrowers' creditworthiness constitutes an important friction in credit markets. Is this friction deeper in recessions, thereby contributing to cyclical swings in credit, or is the friction reduced, as bad times reveal information about firm quality? We test these alternative hypotheses using internal ratings data from a large Swedish cross-border bank and credit scores from a credit bureau. The ability to classify corporate borrowers by credit quality is greater during bad times and worse during good times. Soft and hard information measures both display countercyclical patterns. Our results suggest that information frictions in corporate credit markets are intrinsically countercyclical and not due to cyclical variation in monitoring effort. The presence of countercyclical information frictions provides a rationale for countercyclical provisions or capital in banks to smooth credit cycles.
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| 5. |
- Bergh, Andreas, et al.
(författare)
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Trust Us to Repay: Social Trust, Long-Term Interest Rates, and Sovereign Credit Ratings
- 2021
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Ingår i: Journal of Money, Credit and Banking. - : Wiley. - 1538-4616 .- 0022-2879. ; 53:5
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Tidskriftsartikel (refereegranskat)abstract
- This paper asks whether the sensitivity of market long-term interest rates and credit ratings is associated with cross-country differences in social trust. We note a number of theoretical mechanisms that suggest that macroeconomic shocks are more likely to be effectively dealt with in higher-trust societies. A set of panel estimates across middle- and high-income countries reveals that interest rates and credit ratings are substantially more sensitive to inflation and growth problems in low-trust countries. This finding sheds light on the differential market reactions to macroeconomic problems in seemingly comparable countries.
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| 6. |
- Carlsson, Mikael, 1972-
(författare)
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Microdata Evidence on the Empirical Importance of Selection Effects in Menu-Cost Models
- 2017
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Ingår i: Journal of Money, Credit and Banking. - : WILEY. - 0022-2879 .- 1538-4616. ; 49:8, s. 1803-1830
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Tidskriftsartikel (refereegranskat)abstract
- We use microdata on product prices linked to information on the producing firms that set them to study to what extent the timing of price changes reacts to changes in marginal cost. This self-selection of price changes is a key feature in the canonical Menu-Cost model a la Golosov and Lucas Jr. (2007), which may generate near monetary neutrality (Golosov and Lucas Jr. 2007, Karadi and Reiff 2016), but is absent in the Calvo (1983) model. We find that the microdata strongly favors the Calvo (1983) model. Thus, upstream in the supply chain, price setting is best characterized by a very low degree of self-selection into price changes.
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| 7. |
- Carlsson, Mikael, et al.
(författare)
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Technology shocks and the Labor-Input response : Evidence from firm-level data
- 2007
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Ingår i: Journal of Money, Credit and Banking. - 0022-2879 .- 1538-4616. ; 39:6, s. 1509-1520
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Tidskriftsartikel (refereegranskat)abstract
- We study the relationship between technology shocks and labor input on Swedish firm-level data using a production function approach to identify technology shocks. Taking standard steps yields a contractionary contemporaneous labor-input response in tine with previous studies. This finding may, however, be driven by measurement errors in the labor-input variable. Relying on a unique feature of our data set, which contains two independently measured firm-specific labor input measures, we can evaluate the potential bias. We do not find that this bias conceals any true positive contemporaneous effect. The results thus point away from standard flexible-price models and toward models emphasizing firm-level rigidities.
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| 8. |
- Grodecka, Anna
(författare)
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On the Effectiveness of Loan-to-Value Regulation in a Multiconstraint Framework
- 2020
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Ingår i: Journal of Money, Credit and Banking. - : Wiley. - 0022-2879 .- 1538-4616. ; 52:5, s. 1231-1270
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Tidskriftsartikel (refereegranskat)abstract
- Models in the infinite horizon macro-housing literature often assume that borrowers are constrained exclusively by the loan-to-value (LTV) ratio. Motivated by the Swedish microdata, I explore an alternative arrangement where borrowers are constrained by a collateral constraint and by a debt-service-to-income ratio. While stricter LTV limits are often considered as a measure to tackle the rise in household indebtedness, I find that policy designed to lower the maximum permissible LTV ratio may actually leave the debt-to-GDP ratio unchanged and increase housing prices in equilibrium if borrowers are bound by two constraints at the same time.
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| 9. |
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| 10. |
- Svensson, Lars E. O.
(författare)
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How to Weigh Unemployment Relative to Inflation in Monetary Policy?
- 2014
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Ingår i: JOURNAL OF MONEY CREDIT AND BANKING. - : Wiley. - 0022-2879 .- 1538-4616. ; 46, s. 183-188
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Tidskriftsartikel (refereegranskat)abstract
- The monetary policy mandate for the Federal Reserve and of the Riksbank are essentially the same and boil down to stabilizing inflation around the inflation target and employment or unemployment around a long-run sustainable rate. The relative weight on stabilizing unemployment or employment versus stabilizing inflation may be close to one. A positive unemployment-gap forecast normally calls for a positive inflation-gap forecast.
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