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dc.contributor.authorWesselbaum, Dennis
dc.date.available2016-02-15T01:55:10Z
dc.date.copyright2016-02
dc.identifier.citationWesselbaum, D. (2016). Cheap Talk in a New Keynesian Model (Economics Discussion Papers Series No. 1604). University of Otago. Retrieved from http://hdl.handle.net/10523/6216en
dc.identifier.issn1178-2293
dc.identifier.urihttp://hdl.handle.net/10523/6216
dc.description.abstractThis paper shows that the stance of fiscal policy does have significant impact on the conduct of monetary policy in the United States. Further, we document that the implied fiscal-monetary policy interactions are subject to regime instability, using a Markov-switching model. Then, we develop a microfoundation of regime switches using a cheap talk game between central bank and government. As a case study, we simulate the effects of regime switches within an otherwise standard New Keynesian model using the cheap talk game in the state-space of our model.en_NZ
dc.format.mimetypeapplication/pdf
dc.language.isoenen_NZ
dc.publisherUniversity of Otagoen_NZ
dc.relation.ispartofseriesEconomics Discussion Papers Seriesen_NZ
dc.rightsAttribution-NonCommercial-ShareAlike 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/4.0/*
dc.subjectMarkov-switchingen_NZ
dc.subjectMonetary and Fiscal Policy Interactionsen_NZ
dc.subjectPolicy Coordination Gamesen_NZ
dc.subjectSequential Gamesen_NZ
dc.titleCheap Talk in a New Keynesian Modelen_NZ
dc.typeDiscussion Paperen_NZ
dc.date.updated2016-02-15T01:24:40Z
otago.schoolOtago Business School / Department of Economicsen_NZ
otago.openaccessOpenen_NZ
otago.relation.number1604en_NZ
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Attribution-NonCommercial-ShareAlike 4.0 International
Except where otherwise noted, this item's licence is described as Attribution-NonCommercial-ShareAlike 4.0 International