A New Economic Framework: A DSGE Model with Cryptocurrency

In the new CAMP working paper 07/2019, Asimakopoulos, Lorusso and Ravazzolo evaluate the economic repercussions of cryptocurrency. They develop a Dynamic Stochastic General Equilibrium (DSGE) model, and assume that cryptocurrency serves as an alternative currency option to government currency for households, and that there are endogenous supply and demand for cryptocurrency. Their results indicate that there …

Continue reading A New Economic Framework: A DSGE Model with Cryptocurrency

Narrative monetary policy surprises and the media

In the new CAMP working paper 06/2019, ter Ellen, Larsen and Thorsrud use textual data to identify “narrative monetary policy surprises”, defined as the change in economic media coverage explained by central bank communication accompanying interest rate meetings. Their identification scheme and data provide narrative surprise measures that are uncorrelated with conventional monetary policy surprises, and …

Continue reading Narrative monetary policy surprises and the media

FNI Update September – Signalling a Contraction

The Financial News index (FNI) is designed to track Norwegian GDP growth and the business cycle at high frequency. The underlying indicators are daily time series representing how much the media writes about various topics. The FNI was last updated 30 September. The FNI index continued to fall in September. After a period of growth …

Continue reading FNI Update September – Signalling a Contraction