Cho, S. (Seonghoon)
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- Expectational Stability in Multivariate Models.(2008) Cho, S. (Seonghoon); Moreno-Ibáñez, A. (Antonio)
- New-Keynesian Macroeconomics and the Term Structure.(Ohio State University Press, 2010) Cho, S. (Seonghoon); Bekaert, G. (Geert); Moreno-Ibáñez, A. (Antonio)
- Generalizing determinacy under monetary and fiscal policy switches: the case of the zero lower bound(Elsevier, 2021) Cho, S. (Seonghoon); Moreno-Ibáñez, A. (Antonio)n a fixed-regime setting, it is known since Leeper (1991) that both monetary dominance (mix of active monetary and passive fiscal policies) and fiscal dominance (mix of active fiscal and passive monetary policies) regimes yield a determinate unique equilibrium. This paper shows that in a regime-switching context, switches from monetary dominance to fiscal dominance regimes (and vice-versa) render the overall economy indeterminate for standard parameter values. We apply our results to the important case of the exit from the zero lower bound (ZLB), where monetary policy is inherently passive. Contrary to the fixed regime prediction, the economy switching between the ZLB in a fiscally led regime and a monetary dominance regime is robustly indeterminate, making the coordination of agents' beliefs hard because both monetary and fiscal policies are overall strongly passive.
- The Deaton paradox in a long memory context.(2009) Cho, S. (Seonghoon); Moreno-Ibáñez, A. (Antonio); Gil-Alana, L.A. (Luis A.)
- The Forward Solution for Linear Rational Expectations Models.(2007) Cho, S. (Seonghoon); Moreno-Ibáñez, A. (Antonio)
- A Small-Sample Study of the New-Keynesian Macro Model.(Ohio State University Press, 2006) Cho, S. (Seonghoon); Moreno-Ibáñez, A. (Antonio)
- Macroeconomic Regimes(2012) Cho, S. (Seonghoon); Bekaert, G. (Geert); Inghelbrecht, K. (Koen); Moreno-Ibáñez, A. (Antonio); Baele, L. (Lieven)We estimate a New-Keynesian macro model accommodating regime-switching behavior in monetary policy and in macro shocks. Key to our estimation strategy is the use of survey-based expectations for inflation and output. Output and inflation shocks shift to the low volatility regime around 1985 and 1990, respectively. However, we also identify multiple shifts between accommodating and active monetary policy regimes, which play an as important role as shock volatility in driving the volatility of the macro variables. We provide new estimates of the onset and demise of the Great Moderation and quantify the relative role played by macro-shocks and monetary policy. The estimated rational expectations model exhibits indeterminacy in the mean square stability sense, mainly because monetary policy is excessively passive.
- A Structural Estimation and Interpretation of the New Keynesian Macro Model.(2003) Cho, S. (Seonghoon); Moreno-Ibáñez, A. (Antonio)