Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

After 2007, countries that cut their policy interest rates close to zero turned, among other policies, to forward guidance. We estimate a two-country model of the U.S. and Canada to quantify how unexpected changes in U.S. forward guidance affected Canada. Expansionary U.S. forward guidance shocks, like conventional policy shocks, are beggar-thy-neighbor and depress Canadian output, but by twice as much as conventional shocks. We find that the effect of U.S. forward guidance shocks on Canadian output, unlike conventional policy shocks, depends on the state of U.S. demand and can be five times smaller when U.S. demand is weak.

Monetary policy. --- Monetary management --- Economic policy --- Currency boards --- Money supply --- Banks and Banking --- Inflation --- Macroeconomics --- Money and Monetary Policy --- Business Fluctuations --- Cycles --- Monetary Policy --- Open Economy Macroeconomics --- Interest Rates: Determination, Term Structure, and Effects --- Externalities --- Price Level --- Deflation --- Macroeconomics: Consumption --- Saving --- Wealth --- Monetary economics --- Banking --- Monetary expansion --- Central bank policy rate --- Spillovers --- Consumption --- Monetary policy --- Financial services --- Financial sector policy and analysis --- Prices --- National accounts --- Interest rates --- International finance --- Economics --- United States

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

We combine a structural model with cross-sectional micro data to identify the causes and consequences of rising concentration in the US economy. Using asset prices and industry data, we estimate realized and anticipated shocks that drive entry and concentration. We validate our approach by showing that the model-implied entry shocks correlate with independently constructed measures of entry regulations and M&As. We conclude that entry costs have risen in the U.S. over the past 20 years and have depressed capital and consumption by about seven percent.

Banks and Banking --- Corporate Finance --- Finance: General --- Investments: Stocks --- Macroeconomics --- Interest Rates: Determination, Term Structure, and Effects --- Macroeconomics: Consumption --- Saving --- Wealth --- Corporate Finance and Governance: General --- General Financial Markets: General (includes Measurement and Data) --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Finance --- Ownership & organization of enterprises --- Investment & securities --- Zero lower bound --- Consumption --- Corporate sector --- Competition --- Stocks --- Financial services --- National accounts --- Economic sectors --- Financial markets --- Financial institutions --- Interest rates --- Economics --- Business enterprises --- United States