The Future of Money
... dimension of the cross-subsidy, imposed when credit card companies prohibit merchants from offering discounts for cash payment, between people who pay cash (particularly the “unbanked” without other options) and those who pay with credit cards. Similarly, many clearing and settlement systems give ri ...
... dimension of the cross-subsidy, imposed when credit card companies prohibit merchants from offering discounts for cash payment, between people who pay cash (particularly the “unbanked” without other options) and those who pay with credit cards. Similarly, many clearing and settlement systems give ri ...
Regime Switches, Agents`Beliefs, and Post
... gone through the peak of the crisis. In this context, the Volcker disin‡ation might have been important exactly because it made such a commitment credible. In a similar way, during the recent crisis the Federal Reserve might have experienced problems in convincing agents that exceptional measures wo ...
... gone through the peak of the crisis. In this context, the Volcker disin‡ation might have been important exactly because it made such a commitment credible. In a similar way, during the recent crisis the Federal Reserve might have experienced problems in convincing agents that exceptional measures wo ...
Monetary Policy, Inflation, and the Business Cycle: An Introduction to
... Monetary Fund, the Federal Reserve Board, the European Central Bank (ECB), and many other central banks. It has also provided the theoretical underpinnings to the inflation stability-oriented strategies adopted by the majority of central banks in the industrialized world. A defining feature of this bo ...
... Monetary Fund, the Federal Reserve Board, the European Central Bank (ECB), and many other central banks. It has also provided the theoretical underpinnings to the inflation stability-oriented strategies adopted by the majority of central banks in the industrialized world. A defining feature of this bo ...
Escaping the Great Recession - Centre for Economic Policy Research
... Our work di¤ers from each of these papers in one or more of the following dimensions. First, we conduct a structural estimation of a general equilibrium model and investigate the e¤ects of policy uncertainty at the zero lower bound. In this respect, the paper is related to the literature on the macr ...
... Our work di¤ers from each of these papers in one or more of the following dimensions. First, we conduct a structural estimation of a general equilibrium model and investigate the e¤ects of policy uncertainty at the zero lower bound. In this respect, the paper is related to the literature on the macr ...
Objective-setting and communication of macroprudential policies
... stability, the principal overall objective of macroprudential policy, does not have a commonly agreed definition, let alone a quantitative expression. In addition, there is no analytical paradigm to guide policy decisions, and empirical results on the strength of transmission channels between instru ...
... stability, the principal overall objective of macroprudential policy, does not have a commonly agreed definition, let alone a quantitative expression. In addition, there is no analytical paradigm to guide policy decisions, and empirical results on the strength of transmission channels between instru ...
Designing a Simple Loss Function for Central Banks: Does a Dual
... For instance, the utility-based welfare criterion in the SW model contains more than 90 target variables. See also Edge (2003), who derives analytically the welfare criterion for a model with capital accumulation. ...
... For instance, the utility-based welfare criterion in the SW model contains more than 90 target variables. See also Edge (2003), who derives analytically the welfare criterion for a model with capital accumulation. ...
Monetary/Fiscal Policy Mix and Agents` Beliefs
... In the same way the PM/AF regime plays a key role in explaining the Great Inflation and the contemporaneous decline in the debt-to-GDP ratio, the change in the policy mix at the end of 1981 is the driving force behind the reversal of these dynamics and the large recession that occurred during those ...
... In the same way the PM/AF regime plays a key role in explaining the Great Inflation and the contemporaneous decline in the debt-to-GDP ratio, the change in the policy mix at the end of 1981 is the driving force behind the reversal of these dynamics and the large recession that occurred during those ...
Do Higher Interest Rates Raise or Lower Inflation?
... static demand produces all the standard signs: A rise in interest rates lowers inflation and output, immediately and in the long run. This model is also unstable: If the nominal interest rate is constant, any small deviation from a steady state leads to spiraling inflation and deflation. (Figure 18. ...
... static demand produces all the standard signs: A rise in interest rates lowers inflation and output, immediately and in the long run. This model is also unstable: If the nominal interest rate is constant, any small deviation from a steady state leads to spiraling inflation and deflation. (Figure 18. ...
NBER WORKING PAPER SERIES ANCHORING FISCAL EXPECTATIONS Eric M. Leeper Working Paper 15269
... to float on March 4, 1985, the passage of the Reserve Bank of New Zealand Act in December 1989, and the Fiscal Responsibility Act in 1994. New Zealand led the way in reform of its monetary policy.8 Although at the time other central banks were operating with considerable autonomy—for example, the Ge ...
... to float on March 4, 1985, the passage of the Reserve Bank of New Zealand Act in December 1989, and the Fiscal Responsibility Act in 1994. New Zealand led the way in reform of its monetary policy.8 Although at the time other central banks were operating with considerable autonomy—for example, the Ge ...
Imperfect Knowledge, Inflation Expectations, and Monetary Policy
... In this study, we allow for a form of imperfect knowledge in which economic agents rely on an adaptive learning technology to form expectations. This form of learning represents a relatively modest deviation from rational expectations that nests the latter as a limiting case. We show that the result ...
... In this study, we allow for a form of imperfect knowledge in which economic agents rely on an adaptive learning technology to form expectations. This form of learning represents a relatively modest deviation from rational expectations that nests the latter as a limiting case. We show that the result ...
Impact of Monetary Policy on Indian Economy in the Post
... consider it as an asset while banks consider it as an effective liability. Thus, PesekSaving follows a usable definition of money which consists of three conditions. First, they regard commodity money and fiat money as assets to their holders and liabilities to no one. Second, the Government grants ...
... consider it as an asset while banks consider it as an effective liability. Thus, PesekSaving follows a usable definition of money which consists of three conditions. First, they regard commodity money and fiat money as assets to their holders and liabilities to no one. Second, the Government grants ...
Comparing Inflation and Price Level Targeting
... case, but some comparisons are made to the non-transparent case for both price-level and inflation targeting. There have been some arguments made for raising the inflation target in an inflation targeting regime so that the possibility of deflationary risks and incidence of hitting the ZLB are reduc ...
... case, but some comparisons are made to the non-transparent case for both price-level and inflation targeting. There have been some arguments made for raising the inflation target in an inflation targeting regime so that the possibility of deflationary risks and incidence of hitting the ZLB are reduc ...
modelling core inflation in ukraine in 2003-2012
... UAH/USD exchange rate and was smoothing hryvnia appreciation during that period. From the end of 2001 till mid-2008 the cumulative appreciation of the nominal effective exchange rate (NEER) reached about 20%. Accumulation of FX reserves was the major contributor to base money growth over that period ...
... UAH/USD exchange rate and was smoothing hryvnia appreciation during that period. From the end of 2001 till mid-2008 the cumulative appreciation of the nominal effective exchange rate (NEER) reached about 20%. Accumulation of FX reserves was the major contributor to base money growth over that period ...
The Fiscal Theory of the Price Level in Sub
... Table 3: Autocorrelation of Surpluses in U.S. between 1941 and 1992 ..................................................... 36 Table 4: Autocorrelation of Surpluses in U.S. before 1952 ........................................................................ 37 Table 5: Autocorrelation of Surpluses in ...
... Table 3: Autocorrelation of Surpluses in U.S. between 1941 and 1992 ..................................................... 36 Table 4: Autocorrelation of Surpluses in U.S. before 1952 ........................................................................ 37 Table 5: Autocorrelation of Surpluses in ...
NBER WORKING PAPER SERIES ECONOMICS Michael D. Bordo
... views on money and the economy. The first rule (1948) would maintain full employment by offsetting negative (positive) departures by money financed budget deficits ( and surpluses). The second ( 1960) would have monetary authorities preserve price stability by expanding the money supply at a steady ...
... views on money and the economy. The first rule (1948) would maintain full employment by offsetting negative (positive) departures by money financed budget deficits ( and surpluses). The second ( 1960) would have monetary authorities preserve price stability by expanding the money supply at a steady ...
Asset market approach to exchange rate determination
... of alternative assets would enlarge the range of analysis to consideration of capital flows, and the determination of domestic interest rates. With the introduction of the effects of the level of domestic holdings of wealth on assets demands, there could be a positive wealth effect on desired holdin ...
... of alternative assets would enlarge the range of analysis to consideration of capital flows, and the determination of domestic interest rates. With the introduction of the effects of the level of domestic holdings of wealth on assets demands, there could be a positive wealth effect on desired holdin ...
A Microfoundation of Monetary Economics
... These shortcuts are convenient because they do not have to modify radically the analytical and computational techniques developed for the general equilibrium framework. But analytical convenience often comes at a price. With the shortcuts, the functional forms in which money appears in the models a ...
... These shortcuts are convenient because they do not have to modify radically the analytical and computational techniques developed for the general equilibrium framework. But analytical convenience often comes at a price. With the shortcuts, the functional forms in which money appears in the models a ...
Yield Spreads - Drake University
... market” it must use its cash reserves (money which was out of circulation), therefore the amount banks have available to lend (excess reserves) will increase. When the Fed sells these securities on the “open market” individuals and institutions pay for them with cash which the Fed then holds in rese ...
... market” it must use its cash reserves (money which was out of circulation), therefore the amount banks have available to lend (excess reserves) will increase. When the Fed sells these securities on the “open market” individuals and institutions pay for them with cash which the Fed then holds in rese ...
Escaping the Great Recession
... the economy is out of the zero lower bound can then completely jeopardize the e¤ectiveness of any attempt made by the two authorities to stimulate the economy at the zero lower bound. In summary, a policy trade-o¤ arises the moment that a large negative preference shock pushes monetary policy to th ...
... the economy is out of the zero lower bound can then completely jeopardize the e¤ectiveness of any attempt made by the two authorities to stimulate the economy at the zero lower bound. In summary, a policy trade-o¤ arises the moment that a large negative preference shock pushes monetary policy to th ...
International Reserves - Independent Evaluation Office (IEO)
... conceptual framework behind this approach, presents views of country authorities and academics, and discusses why the Fund’s arguments have not resonated with much of the IMF’s membership. The evaluation also assesses the conceptual underpinnings and quality of the advice on reserve adequacy in the ...
... conceptual framework behind this approach, presents views of country authorities and academics, and discusses why the Fund’s arguments have not resonated with much of the IMF’s membership. The evaluation also assesses the conceptual underpinnings and quality of the advice on reserve adequacy in the ...
DANIEL AMOAH_Feasibility Study of a Single Currency
... The formation of a Monetary Union by the West African Monetary Zone has been in pursuance for more than a decade. The WAMZ is made up of six countries in West Africa; The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone. One significant benefit from using a common currency is the lower costs ...
... The formation of a Monetary Union by the West African Monetary Zone has been in pursuance for more than a decade. The WAMZ is made up of six countries in West Africa; The Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone. One significant benefit from using a common currency is the lower costs ...
optimal and simple monetary policy rules with zero floor on the
... ‡oor involves a de‡ationary bias, which may be signi…cant for certain parameter values and which implies that any quantitative analyses of discretionary biases of monetary policy that ignore the zero lower bound may be misleading. In addition, optimal discretionary policy implies much more aggressi ...
... ‡oor involves a de‡ationary bias, which may be signi…cant for certain parameter values and which implies that any quantitative analyses of discretionary biases of monetary policy that ignore the zero lower bound may be misleading. In addition, optimal discretionary policy implies much more aggressi ...
The optimal quantity of money over the business cycle and at the
... This has prevented the introduction of additional features which are important to understand the business cycle, such as long-lasting heterogeneity, aggregate shock or capital accumulation. Recent developments in the heterogenous agent literature now allow deriving new results about optimal monetary ...
... This has prevented the introduction of additional features which are important to understand the business cycle, such as long-lasting heterogeneity, aggregate shock or capital accumulation. Recent developments in the heterogenous agent literature now allow deriving new results about optimal monetary ...