Central bank research hub - Papers by Patrick J. Kehoe
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Research hub papers by author Patrick J. KehoeenMyths about the Financial Crisis of 2008
http://www.minneapolisfed.org/research/WP/WP666.pdf
Minneapolis Fed Working Papers by Patrick J. Kehoe, V. V. Chari, Lawrence J. ChristianoMyths about the Financial Crisis of 20082008-10-22T07:14:00ZMyths about the Financial Crisis of 2008Full texthttp://www.minneapolisfed.org/research/WP/WP666.pdfV. V. ChariLawrence J. ChristianoPatrick J. KehoePatrick J. Kehoe, V. V. Chari, Lawrence J. Christiano2008-10Federal Reserve Bank of Minneapolis Working PapersNew Keynesian Models: Not Yet Useful for Policy Analysis
http://www.minneapolisfed.org/research/WP/WP664.pdf
Minneapolis Fed Working Papers by V. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattanNew Keynesian Models: Not Yet Useful for Policy Analysis2008-07-03T07:14:59ZIn the 1970s macroeconomists often disagreed bitterly. Macroeconomists have now largely converged on method, model design, and macroeconomic policy advice. The disagreements that remain all stem from the practical implementation of the methodology. Some macroeconomists think that New Keynesian models are on the verge of being useful for quarter-to-quarter quantitative policy advice. We do not. We argue that the shocks in these models are dubiously structural and show that many of the features of the model as well as the implications due to these features are inconsistent with microeconomic evidence. These arguments lead us to conclude that New Keynesian models are not yet useful for policy analysis.New Keynesian Models: Not Yet Useful for Policy AnalysisAbstracthttp://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=1126Full texthttp://www.minneapolisfed.org/research/WP/WP664.pdfV. V. ChariEllen R. McGrattanPatrick J. KehoeV. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattan2008-07Federal Reserve Bank of Minneapolis Working PapersOn the Need for a New Approach to Analyzing Monetary Policy
http://www.minneapolisfed.org/research/WP/WP662.pdf
Minneapolis Fed Working Papers by Andrew Atkeson and Patrick J. KehoeOn the Need for a New Approach to Analyzing Monetary Policy2008-05-23T07:14:00ZNo abstract available.On the Need for a New Approach to Analyzing Monetary PolicyAbstracthttp://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=1121Full texthttp://www.minneapolisfed.org/research/WP/WP662.pdfAndrew AtkesonPatrick J. KehoeAndrew Atkeson and Patrick J. Kehoe2008-05Federal Reserve Bank of Minneapolis Working PapersTemporary Price Changes and the Real Effects of Monetary Policy
http://www.minneapolisfed.org/research/WP/WP661.pdf
Minneapolis Fed Working Papers by Patrick J. Kehoe and Virgiliu MidriganTemporary Price Changes and the Real Effects of Monetary Policy2008-05-07T18:46:00ZIn the data, a large fraction of price changes are temporary. We provide a simple menu cost model which explicitly includes a motive for temporary price changes. We show that this simple model can account for the main regularities concerning temporary and permanent price changes. We use the model as a benchmark to evaluate existing shortcuts that do not explicitly model temporary price changes. One shortcut is to take the temporary changes out of the data and fit a simple Calvo model to it. If we do so prices change only every 50 weeks and the Calvo model overestimates the real effects of monetary shocks by almost 70%. A second shortcut is to leave the temporary changes in the data. If we do so prices change every 3 weeks and the Calvo model produces only 1/9 of the real effects of money as in our benchmark. We show that a simple Calvo model can generate the same real effects as our benchmark model if we set parameters so that prices change every 17 weeks.Temporary Price Changes and the Real Effects of Monetary PolicyAbstracthttp://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=1120Full texthttp://www.minneapolisfed.org/research/WP/WP661.pdfVirgiliu MidriganPatrick J. KehoePatrick J. Kehoe and Virgiliu Midrigan2008-05Federal Reserve Bank of Minneapolis Working PapersSophisticated Monetary Policies
http://www.minneapolisfed.org/research/WP/WP659.pdf
Minneapolis Fed Working Papers by Andrew Atkeson, V. V. Chari, and Patrick J. KehoeSophisticated Monetary Policies2008-04-25T18:25:00ZSophisticated monetary policies can depend on the history of private actions and can differ on and off the equilibrium path. We show that such policies can uniquely implement any desired competitive outcome, even those in which along the equilibrium path interest rate policies violate the Taylor principle. We also show that the conventional restricted policies studied in the literature cannot uniquely support the best outcomes while sophisticated policies can. Finally, we show that sophisticated policies are robust to imperfect monitoring.Sophisticated Monetary PoliciesAbstracthttp://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=1118Full texthttp://www.minneapolisfed.org/research/WP/WP659.pdfAndrew AtkesonV. V. ChariPatrick J. KehoeAndrew Atkeson, V. V. Chari, and Patrick J. Kehoe2008-04Federal Reserve Bank of Minneapolis Working PapersSticky Prices and Sectoral Real Exchange Rates
http://www.minneapolisfed.org/research/WP/WP656.pdf
Minneapolis Fed Working Papers by Patrick J. Kehoe and Virgiliu MidriganSticky Prices and Sectoral Real Exchange Rates2007-10-24T07:14:59ZThe classic explanation for the persistence and volatility of real exchange rates is that they are the result of nominal shocks in an economy with sticky goods prices. A key implication of this explanation is that if goods have differing degrees of price stickiness then relatively more sticky goods tend to have relatively more persistent and volatile good-level real exchange rates. Using panel data, we find only modest support for these key implications. The predictions of the theory for persistence have some modest support: in the data, the stickier is the price of a good the more persistent is its real exchange rate, but the theory predicts much more variation in persistence than is in the data. The predictions of the theory for volatiity fare less well: in the data, the stickier is the price of a good the smaller is its conditional variance while in the theory the opposite holds. We show that allowing for pricing complementarities leads to a modest improvement in the theory¿s predictions for persistence but little improvement in the theory¿s predictions for conditional variances.Sticky Prices and Sectoral Real Exchange RatesAbstracthttp://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=1102Full texthttp://www.minneapolisfed.org/research/WP/WP656.pdfVirgiliu MidriganPatrick J. KehoePatrick J. Kehoe and Virgiliu Midrigan2007-10Federal Reserve Bank of Minneapolis Working PapersReply to Solow
http://www.minneapolisfed.org/research/WP/WP654.pdf
Minneapolis Fed Working Papers by V. V. Chari and Patrick J. KehoeReply to Solow2007-09-21T09:00:00ZHere we reply to Robert Solow¿s comment (forthcoming) on our work (Chari and Kehoe (2007)).Reply to SolowAbstracthttp://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=1097Full texthttp://www.minneapolisfed.org/research/WP/WP654.pdfV. V. ChariPatrick J. KehoeV. V. Chari and Patrick J. Kehoe2007-09Federal Reserve Bank of Minneapolis Working PapersSales and the Real Effects of Monetary Policy
http://www.minneapolisfed.org/research/WP/WP652.pdf
Minneapolis Fed Working Papers by Patrick J. Kehoe and Virgiliu MidriganSales and the Real Effects of Monetary Policy2007-04-23T12:17:59ZIn the data, a sizable fraction of price changes are temporary price reductions referred to as sales. Existing models include no role for sales. Hence, when confronted with data in which a large fraction of price changes are sales related, the models must either exclude sales from the data or leave them in and implicitly treat sales like any other price change. When sales are included, prices change frequently and standard sticky price models with this high frequency of price changes predict small effects from money shocks. If sales are excluded, prices change much less frequently and a standard sticky price model with this low frequency of price changes predict much larger effects of money shocks. This paper adds a motive for sales in a parsimonious extension of existing sticky price models. We show that the model can account for most of the patterns of sales in the data. Using our model as the data generating process, we evaluate the existing approaches and find that neither well approximates the real effects of money in our economy in which sales are explicitly modeled.Sales and the Real Effects of Monetary PolicyAbstracthttp://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=1090Full texthttp://www.minneapolisfed.org/research/WP/WP652.pdfVirgiliu MidriganPatrick J. KehoePatrick J. Kehoe and Virgiliu Midrigan2007-04Federal Reserve Bank of Minneapolis Working PapersIf Exchange Rates Are Random Walks Then Almost Everything We Say About Monetary Policy Is Wrong
http://www.minneapolisfed.org/research/WP/WP650.pdf
Minneapolis Fed Working Papers by Fernando Alvarez, Andrew Atkeson, and Patrick J. KehoeIf Exchange Rates Are Random Walks Then Almost Everything We Say About Monetary Policy Is Wrong2007-03-22T07:14:59ZIf Exchange Rates Are Random Walks Then Almost Everything We Say About Monetary Policy Is WrongAbstracthttp://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=1085Full texthttp://www.minneapolisfed.org/research/WP/WP650.pdfAndrew AtkesonFernando AlvarezPatrick J. KehoeFernando Alvarez, Andrew Atkeson, and Patrick J. Kehoe2007-03Federal Reserve Bank of Minneapolis Working PapersComparing Alternative Representations and Alternative Methodologies in Business Cycle Accounting
http://www.minneapolisfed.org/research/WP/WP647.pdf
Minneapolis Fed Working Papers by V. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattanComparing Alternative Representations and Alternative Methodologies in Business Cycle Accounting2006-12-23T07:12:59ZComparing Alternative Representations and Alternative Methodologies in Business Cycle AccountingAbstracthttp://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=1078Full texthttp://www.minneapolisfed.org/research/WP/WP647.pdfV. V. ChariEllen R. McGrattanPatrick J. KehoeV. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattan2006-12Federal Reserve Bank of Minneapolis Working PapersBusiness Cycle Accounting
http://www.minneapolisfed.org/research/sr/sr328.html
Minneapolis Fed Working Papers by V. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattanBusiness Cycle Accounting2004-08-27T07:10:59ZBusiness Cycle AccountingAbstracthttp://www.minneapolisfed.org/research/wp/wp625.htmlFull texthttp://www.minneapolisfed.org/research/sr/sr328.htmlV. V. ChariEllen R. McGrattanPatrick J. KehoeV. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattan2002-04Federal Reserve Bank of Minneapolis Working PapersAn Economic Test of Structural VARs
http://www.minneapolisfed.org/research/wp/wp631.pdf
Minneapolis Fed Working Papers by V. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattanAn Economic Test of Structural VARs2004-05-27T18:58:00ZAn Economic Test of Structural VARsAbstracthttp://www.minneapolisfed.org/research/wp/wp631.htmlFull texthttp://www.minneapolisfed.org/research/wp/wp631.pdfV. V. ChariEllen R. McGrattanPatrick J. KehoeV. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattan2004-05Federal Reserve Bank of Minneapolis Working PapersThe Optimal Degree of Discretion in Monetary Policy.
http://www.federalreserve.gov/pubs/ifdp/2004/801/ifdp801.pdf
Board of Governors of the Federal Reserve System International Financial Discussion Papers by Susan Athey; Andrew Atkeson; Patrick J. KehoeThe Optimal Degree of Discretion in Monetary Policy.2004-05-01T12:00:00ZThe Optimal Degree of Discretion in Monetary Policy.Abstracthttp://www.federalreserve.gov/pubs/ifdp/2004/801/default.htmFull texthttp://www.federalreserve.gov/pubs/ifdp/2004/801/ifdp801.pdfAndrew AtkesonSusan AtheyPatrick J. KehoeSusan Athey; Andrew Atkeson; Patrick J. Kehoe2004-04Board of Governors of the Federal Reserve System International Financial Discussion PapersE5E52E58E6E61The optimal degree of discretion in monetary policy
http://www.ecb.int/pub/pdf/scpwps/ecbwp338.pdf
European Central Bank Working papers by Susan Athey, Andrew Atkeson and Patrick J. KehoeThe optimal degree of discretion in monetary policy2004-04-28T07:08:00ZThe optimal degree of discretion in monetary policyECBFull texthttp://www.ecb.int/pub/pdf/scpwps/ecbwp338.pdfAndrew AtkesonSusan AtheyPatrick J. KehoeSusan Athey, Andrew Atkeson and Patrick J. Kehoe2004-04European Central Bank Working PapersE5E52E58E6E61The Optimal Degree of Discretion in Monetary Policy
http://www.minneapolisfed.org/research/sr/sr326.html
Minneapolis Fed Working Papers by Susan Athey, Andrew Atkeson, and Patrick J. KehoeThe Optimal Degree of Discretion in Monetary Policy2004-04-15T17:34:00ZThe Optimal Degree of Discretion in Monetary PolicyAbstracthttp://www.minneapolisfed.org/research/wp/wp626.htmlFull texthttp://www.minneapolisfed.org/research/sr/sr326.htmlAndrew AtkesonSusan AtheyPatrick J. KehoeSusan Athey, Andrew Atkeson, and Patrick J. Kehoe2002-11Federal Reserve Bank of Minneapolis Working PapersCompetitive Equilibria with Limited Enforcement
http://www.minneapolisfed.org/research/wp/wp621.pdf
Minneapolis Fed Working Papers by Patrick J. Kehoe and Fabrizio PerriCompetitive Equilibria with Limited Enforcement2004-04-15T17:34:00ZCompetitive Equilibria with Limited EnforcementAbstracthttp://www.minneapolisfed.org/research/wp/wp621.htmlFull texthttp://www.minneapolisfed.org/research/wp/wp621.pdfFabrizio PerriPatrick J. KehoePatrick J. Kehoe and Fabrizio Perri2002-04Federal Reserve Bank of Minneapolis Working PapersOn the optimality of transparent monetary policy
http://www.minneapolisfed.org/research/wp/wp613.pdf
Minneapolis Fed Working Papers by Susan Athey, Andrew Atkeson, and Patrick J. KehoeOn the optimality of transparent monetary policy2004-04-15T17:34:00ZOn the optimality of transparent monetary policyAbstracthttp://www.minneapolisfed.org/research/wp/wp613.htmlFull texthttp://www.minneapolisfed.org/research/wp/wp613.pdfAndrew AtkesonSusan AtheyPatrick J. KehoeSusan Athey, Andrew Atkeson, and Patrick J. Kehoe2001-04Federal Reserve Bank of Minneapolis Working PapersTime-Varying Risk, Interest Rates and Exchange Rates in General Equilibrium
http://www.minneapolisfed.org/research/wp/wp627.pdf
Minneapolis Fed Working Papers by Fernando Alvarez, Andrew Atkeson, and Patrick J. KehoeTime-Varying Risk, Interest Rates and Exchange Rates in General Equilibrium2004-04-15T17:34:00ZTime-Varying Risk, Interest Rates and Exchange Rates in General EquilibriumAbstracthttp://www.minneapolisfed.org/research/wp/wp627.htmlFull texthttp://www.minneapolisfed.org/research/wp/wp627.pdfAndrew AtkesonFernando AlvarezPatrick J. KehoeFernando Alvarez, Andrew Atkeson, and Patrick J. Kehoe2003-01Federal Reserve Bank of Minneapolis Working PapersOn the Robustness of Herds
http://www.minneapolisfed.org/research/wp/wp622.pdf
Minneapolis Fed Working Papers by V. V. Chari and Patrick J. KehoeOn the Robustness of Herds2004-04-15T17:34:00ZOn the Robustness of HerdsAbstracthttp://www.minneapolisfed.org/research/wp/wp622.htmlFull texthttp://www.minneapolisfed.org/research/wp/wp622.pdfV. V. ChariPatrick J. KehoeV. V. Chari and Patrick J. Kehoe2002-05Federal Reserve Bank of Minneapolis Working PapersAccounting for the Great Depression
http://www.minneapolisfed.org/research/wp/Published In: AER, Papers and Proceedings (Vol. 92, No. 2, May 2002, pp. 22-27)
Minneapolis Fed Working Papers by V. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattanAccounting for the Great Depression2004-04-15T17:34:00ZAccounting for the Great DepressionAbstracthttp://www.minneapolisfed.org/research/wp/wp619.htmlFull texthttp://www.minneapolisfed.org/research/wp/Published In: AER, Papers and Proceedings (Vol. 92, No. 2, May 2002, pp. 22-27)V. V. ChariEllen R. McGrattanPatrick J. KehoeV. V. Chari, Patrick J. Kehoe, and Ellen R. McGrattan2002-02Federal Reserve Bank of Minneapolis Working PapersA Decade Lost and Found: Mexico and Chile in the 1980s
http://www.bcentral.cl/eng/studies/working-papers/pdf/dtbc107.pdf
Central Bank of Chile Working Papers by Raphael Bergoeing, Patrick J. Kehoe, Timothy J. Kehoe, Raimundo SotoA Decade Lost and Found: Mexico and Chile in the 1980s2001-10-01T12:00:00ZA Decade Lost and Found: Mexico and Chile in the 1980sAbstracthttp://www.bcentral.cl/eng/studies/working-papers/htm/107.htmFull texthttp://www.bcentral.cl/eng/studies/working-papers/pdf/dtbc107.pdfRaphael BergoeingRaimundo SotoTimothy J. KehoePatrick J. KehoeRaphael Bergoeing, Patrick J. Kehoe, Timothy J. Kehoe, Raimundo Soto2001-09Central Bank of Chile Working Papers