LIMITED ASSET MARKET PARTICIPATION, STICKY WAGES, AND MONETARY POLICY
نویسندگان
چکیده
منابع مشابه
Commentary: Monetary Policy and Asset Market Volatility
Bernanke and Gertler offer an excellent paper on guidelines for monetary policy. Much is to be learned, and when they get close to the key issue: Should the Fed crash asset market bubbles? Their firm nomodel and simulation-basedoffers great comfort to received wisdom. I have learned a lot from the paper and their broader research effort (see Clarida, Gali, and Gertler (1999) and the refer...
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ainstream macroeconomics is in disarray. Perusal of commonly used textbooks in macroeconomics will confirm that impression without much difficulty. Unfortunately, the same statement could have been made, and often was made, fifteen years ago. While in this sense little has changed in recent years, the disarray is now more fundamental and severe than a t any time since the 1930s. Amidst this dis...
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We demonstrate that limited market participation can arise endogenously in the presence of model uncertainty. Our model generates novel predictions on the relation between limited market participation, the equity premium, and the diversification discount. When the dispersion in investors’ model uncertainty is small, full market participation prevails in equilibrium. In this case, the equity pre...
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ژورنال
عنوان ژورنال: Economic Inquiry
سال: 2016
ISSN: 0095-2583
DOI: 10.1111/ecin.12424