This paper examines how news coverage of the European Central Bank (ECB) affects consumer inflation expectations in the four largest euro area countries. Utilizing a unique dataset of multilingual European news articles, we measure the impact of ECB-related inflation news on inflation expectations. Our results indicate that German and Italian consumers are more attentive to this news, whereas in Spain ...
Die deutsche Wirtschaft steckt in der Stagnation fest. Nach zwei Jahren mit einem jeweils leichten Rückgang des Bruttoinlandsprodukts wird es unter dem Strich auch in diesem Jahr kein Wachstum geben. Schwache Exporte, zunehmende Arbeitsplatzsorgen, ein auch deshalb weiterhin verhaltener privater Konsum und wirtschaftspolitische Unsicherheit bremsen die Konjunktur. Die Industrie belasten strukturelle ...
In macroeconomic models featuring borrowing-constrained agents, the effects of monetary policy depend on the fiscal reaction to interest rate changes. This paper presents new evidence on the dynamic causal effects of U.S. monetary policy shocks on fiscal instruments and estimates a Heterogeneous Agent New Keynesian model with fiscal feedback rules to match the empirical results. I find that U.S. fiscal ...
We construct a narrative instrument for government investment from official records in Germany. Using structural vector autoregressions, we document a significant crowding-in of private investment and an output multiplier of roughly 2. Then, we match a New Keynesian dynamic stochastic general equilibrium model to the empirical responses, and we decompose the multiplier into three channels. Public investment ...
The price of cryptocurrency Bitcoin has risen sharply over the past ten years, with many investors adding Bitcoin to their portfolios, benefitting from price increases and diversifying their investments. But is Bitcoin suitable for this purpose? This Weekly Report examines the extent to which Bitcoin, like gold, can contribute to the diversification of an investment portfolio. To achieve this, we have ...
Der Kurs der Kryptowährung Bitcoin ist in den vergangenen zehn Jahren enorm gestiegen. Viele Anleger*innen haben inzwischen Bitcoin in ihr Portfolio aufgenommen, um von dem Kursanstieg zu profitieren und ihre Anlagen zu diversifizieren. Doch eignet sich die Kryptowährung dazu? Dieser Wochenbericht untersucht, inwiefern Bitcoin ähnlich wie Gold zur Diversifikation und Absicherung eines Anlageportfolios ...