CEPR | Jotup

Monetary asmmetries without (and with) price stickiness

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星期五, 四月 19, 2024

Online, University, Public Security Section 9, Employment, Calibration, Small, Equity, Volume Ten, Research Papers in Economics, Policy, A.4, Communication, Crisis, Mass, Silvana Tenreyro, Business, Shock, Intuition, Business cycle, TFP, Volume, European Economic Review, Marginal value, SME, NBER, Forecasting, Depression, 3rd millennium, European Economic Association, Conceptual model, Journal of Monetary Economics, Insurance, Harmonization, Great Depression, CES, Economic Inquiry, Paper, Environment, Political economy, Journal of Financial Economics, MIT, University of York, COVID-19, Behavior, Review of Economic Dynamics, Rigid transformation, Website, Access to finance, Accounting, Working paper, Probability, Total, Appendix, Section 8, Quarterly Journal of Economics, Zero lower bound, Curve, Chapter, Cost, Nominal, Journal of Political Economy, Euro, PDF, ECB, Unemployment, Hoarding, STAT, Economic Policy (journal), Household, Canadian International Council, Social science, Government, Federal Reserve Bank, JEL, Journal, Textbook, Missing, Food, Private sector, A.5, Asymmetric, The Journal of Finance, Credit, Speech, Princeton University Press, Literature, NK, European Central Bank, Growth, Labour, Monetary economics, Loss aversion, Financial intermediary, Injection, Elasticity, Inventory, Subprime lending, Ben Bernanke, Finance, BIS, Phillips curve, International Economic Review, Money, London School of Economics, Marginal product of labor, Pruning, Marginal product, The Economic Journal, Rate, Aswath Damodaran, Risk, OECD, Competition (economics), Section 4, MIT Press, Consumption, Bond, Section 3, Yield curve, Loanable funds, Habit, Cobb–Douglas production function, Economy, Aarhus University, Financial economics, Section 2, Conference, Central bank, Chapter Two, Monetary policy, Capital, Hartman–Grobman theorem, CEPR, Framework, American Economic Review, Capital Markets Union, ZLB, Exercise, Liquidity, Interest, Intensive word form, Workshop, European Commission, Macroeconomic Dynamics, Population growth, B1, Response, Quarterly Journal, Community business development corporation, GDP, E31, Control, Journal of Economic Theory, Christian Social Union (UK), T2M, Hamper, Data, American Economic Journal, Aggregate, Konstantinidis, B.1, A.9, A.6, Remuneration, Civil service commission, EUR, Uncertainty, Motivation, A.7, Bank, GFC, Section 13, Motion, Reproduction, IMF, Staggers Rail Act, Abstract, Tale, Handbook, Asymmetry, Stanford University, Communications satellite

Key Points:

Digital euro safeguards – protecting financial stability and liquidity in the banking sector

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星期四, 四月 18, 2024

A digital euro would offer a wide range of

Key Points:

A digital euro would offer a wide range of
financial stability benefits, including safeguarding the role of public money and
strengthening the strategic autonomy and monetary sovereignty of the euro area in
the digital era.
Keywords: CBDC, digital euro, bank intermediation, financial stability risks.
A digital euro has the potential to offer a wide range of financial stability
benefits for the digital era.
A digital euro would
stimulate financial innovation among private sector entities and enhance the
efficiency and resilience of the financial system by supporting competition and
diversity within it.3 In addition, a digital euro would strengthen the strategic autonomy
and monetary sovereignty of the euro area.
A digital euro would be designed to minimise risks to the financial system.
2
The preparation phase will pave the way for a future decision on whether or not to issue a digital euro.
When gauging the implications for the euro area banking sector of introducing a
digital euro, take-up would be key, as it would determine the level of deposit
outflows.
In the latter case, the
issuance of a digital euro would not affect banks? balance sheets, since banks would return euro
banknotes to the Eurosystem in exchange for digital euro.
Banknotes and digital euro are two different
types of central bank liability, so a swap between banknotes and digital euro would only affect the
composition and not the size of the Eurosystem?s balance sheet.
In our analysis, we model only the
substitution of commercial bank deposits with a possible future digital euro.
8
The legislative proposal on a digital euro provides for the inclusion of such safeguards and establishes
specific criteria for the limits, aiming to contain the use of a digital euro as a store of value.
ECB Occasional Paper Series No 346
4

2

The added value of digital euro
safeguards such as holding limits
To understand the benefits of digital euro safeguards, such as holding limits, it
is useful to first consider the implications of introducing a CBDC without
adequate safeguards.
(2022), ?Central bank digital currency and bank intermediation: Exploring different
approaches for assessing the effects of a digital euro on euro area banks?, Occasional Papers, No 293,
European Central Bank, Frankfurt am Main, May.
deciding to adopt the digital euro, and (ii) the average amount of digital euro in a
wallet.
At the same time, as discussed in this paper, the design of a digital euro would
include effective safeguards, such as individual holding limits, to mitigate
potential financial stability risks.
ECB Occasional Paper Series No 346
15

an upper bound on the amount of digital euro in circulation, thereby addressing and
limiting financial stability concerns associated with the introduction of a digital euro.
(2023), ?A digital euro: gauging the
financial stability implications?, Financial Stability Review, ECB, November.

Demographics, labor market power and the spatial equilibrium

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星期二, 二月 13, 2024

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Abstract

Key Points:

Abstract
This paper studies how demographics affect aggregate labor market power, the urban wage
premium and the spatial concentration of population.
I develop a quantitative spatial model
in which labor market competitiveness depends on the demographic composition of the local
workforce.
If these factors differ across workers, labor market power has a role to
play in explaining wage inequality.
This paper contributes to the literature on differences in labor market power by analyzing a
new dimension of heterogeneity: demographics.
Since older workers are less mobile in terms of
switching workplaces, firms have more labor market power over older workers.
I start by estimating labor market power by measuring the sensitivity of worker turnover to
the wage paid.
I find a strong
role of demographics in determining the degree of labor market power enjoyed by firms.
Next, I provide evidence of the importance of differences in labor market power for spatial
wage inequality.
To explore the consequences of labor market sorting, I build a spatial general equilibrium
model in which labor market competitiveness depends on the demographic composition of the
ECB Working Paper Series No 2906

2

local workforce.
If these factors differ across workers, labor market power has a role to
play in explaining wage inequality.
In
the model, geographic sorting by age matters and leads to higher labor market power in rural
areas, which implies an urban wage premium that is 4% larger than with uniform labor supply
elasticities.
I follow Manning (2013) and estimate labor market power by measuring the sensitivity of worker
turnover to the wage paid.
Bachmann et al., 2021; Ahlfeldt et al., 2022a; Berger et al.,
2022) that nest a monopsonistic labor market in a spatial general equilibrium model (Redding
and Rossi-Hansberg, 2017).
As firms have more labor market power
over older workers, they face an upward-sloping labor supply curve that is less elastic in regions
with an older workforce.
Firms choose in which labor market to operate in the sense that there is free
entry at fixed costs into all locations.
How are differences in labor market competitiveness across space sustained in spatial equilibrium?
I use the model to quantify the importance of heterogeneity
in labor market power for the urban wage premium and the spatial concentration of population.
My work is complementary to but quite different
from this paper since I argue that population aging increases labor market power rather than
product market power.
By analyzing the effects of a changing age composition of the workforce in the context
of labor market power, I relate to literature on the labor market effects of population aging.
ECB Working Paper Series No 2906
7

after controlling for age, differences in labor market power between East and West Germany
vanish.
They conclude that higher
concentration is associated with higher labor market power (as in the model of Jarosch et al.,
forthcoming).
I offer an alternative explanation why labor market power differs across regions:
Since denser regions have a younger workforce, workers are more mobile in terms of switching
jobs which implies lower labor market power of firms.
In this case, I infer a
high labor supply elasticity and low labor market power of firms.
I contribute to this growing debate by
quantifying differences in labor market power across worker groups and their effects on regional
inequality.
While the model shows how demographics affect labor market power, the urban wage premium and agglomeration, one fundamental question remains open for future research: What
are the policy implications of (differences in) labor market power?

New Poll Reveals How Middle East Conflict Could Imperil Biden's Reelection Bid

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星期四, 一月 25, 2024

Ageing, Gasoline, Multimedia, Policy, Senior advisor, CEPR, Economy, Research, Democrat, YouGov

WASHINGTON, Jan. 25, 2024 /PRNewswire/ -- A new YouGov poll, commissioned by the Center for Economic and Policy Research (CEPR), shows that a majority of Americans would hold President Biden responsible for a rise in gasoline prices, if the ongoing conflict in the Middle East were to widen further.

Key Points:

WASHINGTON, Jan. 25, 2024 /PRNewswire/ -- A new YouGov poll, commissioned by the Center for Economic and Policy Research (CEPR), shows that a majority of Americans would hold President Biden responsible for a rise in gasoline prices, if the ongoing conflict in the Middle East were to widen further.
23 percent of respondents who voted for Biden in 2020 reported that they would hold the president responsible for an increase in gas prices due to a widening of the current conflict.
"This could easily make the difference in a close election.
The survey, conducted January 19–22, 2024, included a sample of n=1,000 adults, aged 18 and older, with a margin of error at +/-3.4 percent.

Hawkish or dovish central bankers: do different flocks matter for fiscal shocks?

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星期三, 一月 3, 2024

This column presents evidence on the role that US monetary policy plays in how fiscal spending affects the economy.

Key Points:

This column presents evidence on the role that US monetary policy plays in how fiscal spending affects the economy.
A dovish Federal Open Market Committee (FOMC) delays policy rate increases, while a hawkish FOMC tightens monetary policy more promptly, following increased fiscal spending.

KuCoin Delivers Keynote Speech at Green Sustainable Finance Forum in COP28 Blue Zone

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星期二, 十二月 12, 2023

KuCoin, a top five global crypto exchange, proudly presented at the Green Sustainable Finance Forum at the United Nations Climate Change Conference (COP28) in Dubai, UAE.

Key Points:

KuCoin, a top five global crypto exchange, proudly presented at the Green Sustainable Finance Forum at the United Nations Climate Change Conference (COP28) in Dubai, UAE.
The Green Sustainable Finance Forum has shed light on how to integrate sustainability into the financial system by raising awareness and leveraging technology.
KuCoin's Chief Sustainability Officer (CSO), Nancy Cheung, delivered a keynote speech on the critical role of Green Blockchain technology.
She emphasized how blockchain technology and decentralization have brought positive changes to the society, and also mentioned that “KuCoin is deeply committed to fostering green sustainable finance and development.

DreamBox Learning® Unveils New Features to Provide Real-Time Student-Level Data Insight

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星期四, 六月 22, 2023

Combined with DreamBox’s highly efficacious curriculum, these new features provide the insight educators need to deliver a personalized and engaging student experience.

Key Points:

Combined with DreamBox’s highly efficacious curriculum, these new features provide the insight educators need to deliver a personalized and engaging student experience.
To accelerate student learning growth, real-time data is crucial for educators to adapt instruction to each student’s learning needs.
Groton is happy to partner with DreamBox to optimize efficacy and growth, because we believe that DreamBox is an essential ingredient to our math instruction.
DreamBox provides this information by mathematical domain to help educators make decisions on when and how to provide additional support to students.

A new tool in the box: dividend restrictions as supervisory policy stimulus

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星期六, 五月 27, 2023

Key Points:

New research finds that pandemic learning loss impacted whole communities, regardless of student race or income

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星期四, 五月 11, 2023

CAMBRIDGE, Mass., May 11, 2023 /PRNewswire/ -- Today, The Education Recovery Scorecard, a collaboration with researchers at the Center for Education Policy Research at Harvard University (CEPR) and Stanford University's Educational Opportunity Project, released 12 new state reports and a research brief to provide the most comprehensive picture yet of how the pandemic affected student learning. Building on their previous work, their findings reveal how school closures and local conditions exacerbated inequality between communities — and how little time school leaders have to help students catch up.

Key Points:

They found that where children lived during the pandemic mattered more to their academic progress than their family background, income, or internet speed.
Moreover, after studying instances where test scores rose or fell in the decade before the pandemic, the researchers found that the impacts lingered for years.
"Children have resumed learning, but largely at the same pace as before the pandemic.
And the extent to which schools were closed appears to have had the same effect on all students in a community, regardless of income or race.

New Report Finds that Economic Sanctions Are Often Deadly and Harm People's Living Standards in Target Countries

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星期四, 五月 4, 2023

The report, " The Human Consequences of Economic Sanctions ," by economist Francisco Rodríguez , reviews 32 studies that assess the impact of economic sanctions on living standards.

Key Points:

The report, " The Human Consequences of Economic Sanctions ," by economist Francisco Rodríguez , reviews 32 studies that assess the impact of economic sanctions on living standards.
It shows that 30 of these analyses found significant declines in living standards in sanctions-targeted countries, including Afghanistan, Iran, and Venezuela — three case studies that demonstrate how sanctions contribute to widespread harm, including death.
New report finds economic sanctions harm people in target countries, including by contributing to increases in mortality, poverty, and inequality.
"Whether sanctions hurt regular people in the target countries is a hotly debated topic," Rodríguez says, "but it shouldn't be.