
Guy SegalBank Of Israel · Research Department
Guy Segal
PhD
About
8
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Introduction
I work at the Research Department, Bank Of Israel. MY main interests are Macroeconomics and Monetary Economics, in particular optimal monetary policy. MY most recent publication is 'To Respond or Not to Respond: Measures of the Output Gap in Theory and in Practice.'
Publications
Publications (8)
This paper analyzes the implications of responding to either the model-based New Keynesian output gap or to its estimates, and in particular, a Hodrick-Prescott filtered output gap or a linearly detrended output gap. Responding to these estimates instead of to the “true” unobserved output gap generates long-lasting business cycles and lower welfare...
After a negative demand shock, monetary policy can lead to positive inflation and future output gap that converge to their targets from above zero. We show that such dynamics are feasible under a super-inertial rule, that is if the degree of interest rate smoothing is above a threshold greater than one. We also show that the more backward-looking t...
We compare and analyze two commonly used specifications of the interest rate term in the objective function of the monetary authority; a squared interest rate term (Alternative I) and a squared first difference of the interest rate (Alternative II). We find that the inflation response to a positive demand shock is negative (counterintuitive) under...
In light of the steep increase of home prices and rents in Israel in 2009-2010, we identified and quantified the macroeconomic variables that influenced these prices between 1999 and 2010. Estimating an error-correction model and a difference equation model, we found that the monetary interest rate cut in response to the global economic crisis was...