Is Monetary Policy Always Effective? Incomplete Interest Rate Pass-through in a DSGE Model

In the new CAMP working paper 09/2019, Binning, Bjørnland and Maih estimate a regime-switching DSGE model with a banking sector to explain incomplete and asymmetric interest rate pass-through. They find interest rate pass-through to be mostly incomplete, but with the magnitude of the pass-through depending on the shocks that hit the economy. When at the …

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Supply flexibility in the shale patch: Facts, no fiction

A recent controversy in the literature, between Baumeister and Hamilton (2019a,b) on the one side, and Kilian and Zhou (2019) and Kilian (2019) on the other side, has involved the paper by Bjørnland, Nordvik and Rohrer (2017). The debate relates to the size of the price elasticity of oil supply. In particular, Baumeister and Hamilton …

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FNI Update October – The Fall Continues

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 31 October. The FNI index continued to fall in October. Following months with negative growth, …

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