"Does Inflation Targeting Framework Make a Significant Difference
... started to implement a new approach of managing inflation rate called Inflation Targeting Framework (ITF) as the main framework of their monetary policy. There is no one universal description of what ITF really is. However, in general it can be defined as a framework of monetary policy which has an ...
... started to implement a new approach of managing inflation rate called Inflation Targeting Framework (ITF) as the main framework of their monetary policy. There is no one universal description of what ITF really is. However, in general it can be defined as a framework of monetary policy which has an ...
Simons, Friedman and the development of monetary
... The two most prominent rules were those formulated by Henry Simons and Milton Friedman.2 Those two rules, however, were very different. Beginning in the mid-1930s, Simons (1936, 1946) proposed a rule that targeted a constant price level in the short run.3 Specifically, under his proposal, changes in ...
... The two most prominent rules were those formulated by Henry Simons and Milton Friedman.2 Those two rules, however, were very different. Beginning in the mid-1930s, Simons (1936, 1946) proposed a rule that targeted a constant price level in the short run.3 Specifically, under his proposal, changes in ...
Understanding the Greenspan Standard
... that stellar performance also will leave a lasting legacy, and what that legacy might or should be. There, the answers are far from clear. Inside the black box: Defining the Greenspan standard For years now, U.S. monetary policy has been said to be on the Greenspan standard, meaning that it is whate ...
... that stellar performance also will leave a lasting legacy, and what that legacy might or should be. There, the answers are far from clear. Inside the black box: Defining the Greenspan standard For years now, U.S. monetary policy has been said to be on the Greenspan standard, meaning that it is whate ...
the impact of monetary policy on output and inflation in india
... stimulating overall consumption and investment. It is also important to note that high growth leads to high inflation, following the Phillips curve (Phillips 1958), which depicts a short-term direct relationship between growth and inflation (i.e., high growth in the short-run gives rise to inflation ...
... stimulating overall consumption and investment. It is also important to note that high growth leads to high inflation, following the Phillips curve (Phillips 1958), which depicts a short-term direct relationship between growth and inflation (i.e., high growth in the short-run gives rise to inflation ...
consumers` inflation expectations and monetary policy in europe
... However, in reality index-linked bonds are scarce, and where they are issued, they usually differ from nominal bonds in more than just the determination of their returns. Thus, it is usually necessary to make strong auxiliary assumptions to infer expected inflation from the prices of these nominal a ...
... However, in reality index-linked bonds are scarce, and where they are issued, they usually differ from nominal bonds in more than just the determination of their returns. Thus, it is usually necessary to make strong auxiliary assumptions to infer expected inflation from the prices of these nominal a ...
Introduction to an Alternative History of Money
... its conclusions. First, Institutionalists (in particular) have rejected the formalist methodology adopted by orthodox economists in favor of a substantivist methodology (Stanfield 1986). In the formalist methodology, the economist begins with the “rational” economic agent facing scarce resources and ...
... its conclusions. First, Institutionalists (in particular) have rejected the formalist methodology adopted by orthodox economists in favor of a substantivist methodology (Stanfield 1986). In the formalist methodology, the economist begins with the “rational” economic agent facing scarce resources and ...
Introduction to an Alternative History of Money
... its conclusions. First, Institutionalists (in particular) have rejected the formalist methodology adopted by orthodox economists in favor of a substantivist methodology (Stanfield 1986). In the formalist methodology, the economist begins with the “rational” economic agent facing scarce resources and ...
... its conclusions. First, Institutionalists (in particular) have rejected the formalist methodology adopted by orthodox economists in favor of a substantivist methodology (Stanfield 1986). In the formalist methodology, the economist begins with the “rational” economic agent facing scarce resources and ...
1 Essa ys on
... ously and explicitly, the time horizon that is relevant for the question at hand. This view was brought into prominence by Irving Fisher at the turn of the past century and has become a common feature of modern macroeconomic theories. Notwithstanding, the methods used by researchers to analyze dynam ...
... ously and explicitly, the time horizon that is relevant for the question at hand. This view was brought into prominence by Irving Fisher at the turn of the past century and has become a common feature of modern macroeconomic theories. Notwithstanding, the methods used by researchers to analyze dynam ...
Helicopter Money: Irredeemable Fiat Money and the
... The expression 'legal tender' has a technical meaning in relation to the settlement of a debt. The legal definition does not imply that legal tender is a means of payment that must be accepted by the parties to a transaction, but rather that it is a legally defined means of payment that should not ...
... The expression 'legal tender' has a technical meaning in relation to the settlement of a debt. The legal definition does not imply that legal tender is a means of payment that must be accepted by the parties to a transaction, but rather that it is a legally defined means of payment that should not ...
Greenspan`s Conundrum and the Fed`s Ability to
... In his February 17, 2005, testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Federal Reserve Chairman Alan Greenspan observed that the 10-year Treasury yield trended lower despite the 150-basis-point rise in the Federal Open Market Committee’s (FOMC’s) target for the ...
... In his February 17, 2005, testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Federal Reserve Chairman Alan Greenspan observed that the 10-year Treasury yield trended lower despite the 150-basis-point rise in the Federal Open Market Committee’s (FOMC’s) target for the ...
Wage Setting Patterns and Monetary Policy: International Evidence No. 10-8
... Warmedinger 2008). Since 1955, it has became customary for the main unions in Japan to conduct annual negotiations for wage increases on a national scale; the negotiations with large companies start in February and about half of the contracts are stipulated by the end of March, coinciding with the ...
... Warmedinger 2008). Since 1955, it has became customary for the main unions in Japan to conduct annual negotiations for wage increases on a national scale; the negotiations with large companies start in February and about half of the contracts are stipulated by the end of March, coinciding with the ...
Hitotsubashi ICS-FS Working Paper Series Exiting from QE
... literature, the measure of QE is price-based. Kapetanios et. al. (2012) and Baumeister and Benati (2013) include the yield spread in their VARs (vector autoregressions). The QE measure in Wu and Xia (2014) is the shadow policy rate properly defined. More relevant to our paper are those studies that ...
... literature, the measure of QE is price-based. Kapetanios et. al. (2012) and Baumeister and Benati (2013) include the yield spread in their VARs (vector autoregressions). The QE measure in Wu and Xia (2014) is the shadow policy rate properly defined. More relevant to our paper are those studies that ...
Some Lessons from Six Years of Practical Inflation Targeting L
... stability, keep average inflation over a longer period on target, as other inflation-targeting central banks have done successfully. Second, do not include household debt as an additional (intermediate) target variable in addition to inflation and unemployment. This is especially important since “le ...
... stability, keep average inflation over a longer period on target, as other inflation-targeting central banks have done successfully. Second, do not include household debt as an additional (intermediate) target variable in addition to inflation and unemployment. This is especially important since “le ...
Job Market Paper - Alfred Lerner College of Business and
... explicitly announces a quantitative inflation target that it commits to achieve over some time horizon, usually the medium or the long term.1 Although there is much consensus on what the level or the range of the inflation target should be,2 central banks and researchers diverge on from which price ...
... explicitly announces a quantitative inflation target that it commits to achieve over some time horizon, usually the medium or the long term.1 Although there is much consensus on what the level or the range of the inflation target should be,2 central banks and researchers diverge on from which price ...
6/RT/03 August 2003 CENTRAL BANK AND FINANCIAL SERVICES
... values). However, we also demonstrate that another aspect of Ball’s result—specifically, that inflation can be reduced without output’s ever declining below its baseline level— relies on a highly restrictive assumption about pricing behavior (namely, that firms do not discount their future profits). ...
... values). However, we also demonstrate that another aspect of Ball’s result—specifically, that inflation can be reduced without output’s ever declining below its baseline level— relies on a highly restrictive assumption about pricing behavior (namely, that firms do not discount their future profits). ...
The Monetary Transmission Mechanism in Pre
... gold-standard countries lowered people’s confidence in sovereign reserve currency and stimulated their demand for gold. Rising gold price relatively lowered commodity price and brought in deflation. Silver acted as a commodity in the New York market also followed a deflationary trend. However, China ...
... gold-standard countries lowered people’s confidence in sovereign reserve currency and stimulated their demand for gold. Rising gold price relatively lowered commodity price and brought in deflation. Silver acted as a commodity in the New York market also followed a deflationary trend. However, China ...
Anchoring fiscal expectations 1
... undermine the Riksbank’s newly adopted inflation targeting regime. A series of bills beginning in late 1994, called the ‘Consolidation Programme’, sought to stabilise debt by adopting both a nominal expenditures ceiling and a surplus target. By 1998, the budget had swung back to surplus and ...
... undermine the Riksbank’s newly adopted inflation targeting regime. A series of bills beginning in late 1994, called the ‘Consolidation Programme’, sought to stabilise debt by adopting both a nominal expenditures ceiling and a surplus target. By 1998, the budget had swung back to surplus and ...
The Timing of Monetary Policy Shocks Giovanni Olivei and Silvana Tenreyro
... …rst and second quarters of the calendar year, the response of output to a monetary policy shock is economically relevant. An expansionary shock in either the …rst or the second quarter with an impact e¤ect on the federal funds rate of -25 basis points raises output in the following eight quarters b ...
... …rst and second quarters of the calendar year, the response of output to a monetary policy shock is economically relevant. An expansionary shock in either the …rst or the second quarter with an impact e¤ect on the federal funds rate of -25 basis points raises output in the following eight quarters b ...
Public attitudes to inflation and interest rates
... prices. A key risk for monetary policy makers is that inflation expectations move persistently away from the 2% inflation target. If that occurred, and those expectations became built into future wages and prices, there is a risk that inflation would remain away from the target for longer. Assessing ...
... prices. A key risk for monetary policy makers is that inflation expectations move persistently away from the 2% inflation target. If that occurred, and those expectations became built into future wages and prices, there is a risk that inflation would remain away from the target for longer. Assessing ...
Liberalization of Foreign Exchange Controls: Japan`s Experiences
... sterilized interventions when it holds huge international reserves and experiences large and persistent capital inflow. Even an economy can maintain the stability of nominal exchange rate and monetary autonomy in short term, it can’t avoid appreciation in real exchange rate through a rise in inflat ...
... sterilized interventions when it holds huge international reserves and experiences large and persistent capital inflow. Even an economy can maintain the stability of nominal exchange rate and monetary autonomy in short term, it can’t avoid appreciation in real exchange rate through a rise in inflat ...
NBER WORKING PAPER SERIES MONETARY POLICY WHEN POTENTIAL OUTPUT IS UNCERTAIN:
... Our perspective in ascribing a price level target to the Alan Greenspan Fed is very much “as if.” This perspective is also found in Taylor’s (1993) classic description of interest rate rules. Moreover, the particular policy rules we consider are not the key for our analysis. To reiterate, what is cr ...
... Our perspective in ascribing a price level target to the Alan Greenspan Fed is very much “as if.” This perspective is also found in Taylor’s (1993) classic description of interest rate rules. Moreover, the particular policy rules we consider are not the key for our analysis. To reiterate, what is cr ...
Chi-squared tests of interval and density forecasts, and the
... paper to refer to Pearson’s chi-squared statistic, memorable to multitudes of students as the formula Σ (O − E ) 2 / E . Asymptotically it has the χ 2 distribution under the null hypothesis. For samples of the size occurring in macroeconomic forecasting we also consider the calculation of exact P-v ...
... paper to refer to Pearson’s chi-squared statistic, memorable to multitudes of students as the formula Σ (O − E ) 2 / E . Asymptotically it has the χ 2 distribution under the null hypothesis. For samples of the size occurring in macroeconomic forecasting we also consider the calculation of exact P-v ...
TARGET Bank of England and The Times Interest Rate Challenge
... a long list of terms that might be relevant to the Bank of England and The Times Interest Rate Challenge. But do not be put off by this, or by the thought of too much economic theory or too many statistics, or the jargon and the ‘buzz’ words of the day. The level of knowledge and understanding neede ...
... a long list of terms that might be relevant to the Bank of England and The Times Interest Rate Challenge. But do not be put off by this, or by the thought of too much economic theory or too many statistics, or the jargon and the ‘buzz’ words of the day. The level of knowledge and understanding neede ...
Why Commercial Banks Don`t Create Money
... loans (or better, total assets of the banking system). How can we explain this? And what is the meaning of M4 growth? What could the growth of broad money mean? In the conventional account of banking the causal flow is from deposits to loans. In this interpretation the growth in M4 during the Great ...
... loans (or better, total assets of the banking system). How can we explain this? And what is the meaning of M4 growth? What could the growth of broad money mean? In the conventional account of banking the causal flow is from deposits to loans. In this interpretation the growth in M4 during the Great ...