Menu Content/Inhalt
August 2019
M T W T F S S
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 1

Search on Site

Events Print
previous year previous month next month next year
See by year See by month See by week See Today Search Jump to month
Bernard Dumas, INSEAD Print
Monday, 29 April 2019, 16:30 - 18:00

Joint with NBB, KULeuven, UA, UCL, UGent, ULB, ULg, UMons, UNamur, USaint-Louis, Vlerick, VUB

Bernard Dumas, INSEAD

The Stock Market in an Inflation-Targeting Economy

Abstract : We construct recursive solutions for, and study quasi-explicitly the properties of the dynamic equilibrium
of an economy with three types of agents: (i) household/investors who supply labor with a finite
elasticity, consume a large variety of goods that are not perfect substitutes and trade government
bonds; (ii) firms that produce those varieties of goods, setting prices in a Calvo manner; (iii) a
government that collects an exogenous fiscal surplus and acts mechanically, buying and selling bonds
in accordance with a Taylor policy rule based on expected inflation. In this equilibrium, we price the
stock market, defined as the present discounted value of firms’ profits and simulate the joint behavior of
stock returns and inflation. We use the simulated data to gauge the adequacy of the model in
comparison with empirical stylized facts.

Homepage 

Please reply by email to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it if you wish to participate to this seminar or if you
want to have an appointment with the speaker. Due to security measures it is necessary that you
register before Friday evening April 26th. Without registration, you will not be allowed in the seminar
room.
In case you want to access the NBB Parking (rue Montagne aux Herbes potagères 41), please also provide
us with your name and the license plate of your car. 

 

Location: NBB auditorium A1
Contact: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Back