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... price forecasting than price level targeting does, which causes high variability in the price level. At the same time, long-term price level targeting is accompanied by lower variability in the price level. On the contrary, price level targeting causes short-term fluctuations in inflation and output ...
... price forecasting than price level targeting does, which causes high variability in the price level. At the same time, long-term price level targeting is accompanied by lower variability in the price level. On the contrary, price level targeting causes short-term fluctuations in inflation and output ...
NBER WORKING PAPER SERIES THE FUTURE OF EMU: WHAT DOES
... Federal Reserve Banks issues dollar bills perfectly acceptable in every reserve district a five dollar bill issued by the Federal Reserve Bank of Richmond is always perfectly interchangeable with a five dollar bill issued by any other Federal Reserve Bank. A national monetary union has as a rule one ...
... Federal Reserve Banks issues dollar bills perfectly acceptable in every reserve district a five dollar bill issued by the Federal Reserve Bank of Richmond is always perfectly interchangeable with a five dollar bill issued by any other Federal Reserve Bank. A national monetary union has as a rule one ...
Using Monetary Policy to Stabilize Economic Activity
... Because movements in output gaps and cost shocks reflect transitory fluctuations, the unconditional expectation of the output gap is zero. Equation (2) then implies that E(pt–pT) = bE(pt +1-pT), where E denotes the unconditional expectations operator. Ruling out explosive paths for inflation, this c ...
... Because movements in output gaps and cost shocks reflect transitory fluctuations, the unconditional expectation of the output gap is zero. Equation (2) then implies that E(pt–pT) = bE(pt +1-pT), where E denotes the unconditional expectations operator. Ruling out explosive paths for inflation, this c ...
on the meaning and future of the european monetary system
... The central attributes of a state are its powers in the domains of defense, foreign policy, and money. Hence, integration through a European Defense Community and a European Political Community, covering all three areas, was indeed the logical approach. But this route proved impassable from a very e ...
... The central attributes of a state are its powers in the domains of defense, foreign policy, and money. Hence, integration through a European Defense Community and a European Political Community, covering all three areas, was indeed the logical approach. But this route proved impassable from a very e ...
What is the Most Effective Monetary Policy for Aid
... Characteristics of aid-receiving countries Prati and Tressel (2006) develop a stylized general equilibrium model where monetary policy affects real variables as long as the capital account is closed to both inflows and outflows and the prices of a country’s traded goods are set in international mark ...
... Characteristics of aid-receiving countries Prati and Tressel (2006) develop a stylized general equilibrium model where monetary policy affects real variables as long as the capital account is closed to both inflows and outflows and the prices of a country’s traded goods are set in international mark ...
Prospects for Financial Sector Reform in the Context of
... are insufficient projects for them to finance (Harvey, 1991). Financial sector reform can address some, but not all, of these problems. 1.1.2. How can developing economies promote financial deepening? As mentioned earlier, financial reform is seen as an important component of structural adjustment m ...
... are insufficient projects for them to finance (Harvey, 1991). Financial sector reform can address some, but not all, of these problems. 1.1.2. How can developing economies promote financial deepening? As mentioned earlier, financial reform is seen as an important component of structural adjustment m ...
Capital Controls and Monetary Policy in Developing Countries
... The globalization of international financial markets has caused a significant increase in emerging countries’ exposure to the risk of capital flow bonanzas or capital flight. In 2007 net debt flows to the developing world were more than 6.5 times as big as they were in 2003; yet, in 2008 these flows ...
... The globalization of international financial markets has caused a significant increase in emerging countries’ exposure to the risk of capital flow bonanzas or capital flight. In 2007 net debt flows to the developing world were more than 6.5 times as big as they were in 2003; yet, in 2008 these flows ...
Monetary Policy Independence under Flexible
... are no obvious domestic reasons for raising interest rates, some central banks will follow the Fed. This phenomenon may be called policy “spillover,” and could be the result of a number of factors, including the desire to protect domestic currencies from “excessive” depreciation.6 The late Ron McKin ...
... are no obvious domestic reasons for raising interest rates, some central banks will follow the Fed. This phenomenon may be called policy “spillover,” and could be the result of a number of factors, including the desire to protect domestic currencies from “excessive” depreciation.6 The late Ron McKin ...
Building a Kenyan Monetary Regime for the 21 Century
... To frame our discussion, we start, in Section 2, by describing the characteristics of the monetary frameworks in floating exchange rate regimes such as Kenya, focusing specifically on monetary-targeting and inflation-targeting. We pay particular attention on the latter, however, explicitly recognizi ...
... To frame our discussion, we start, in Section 2, by describing the characteristics of the monetary frameworks in floating exchange rate regimes such as Kenya, focusing specifically on monetary-targeting and inflation-targeting. We pay particular attention on the latter, however, explicitly recognizi ...
T h e R e s e r v... b u s i n e s s c...
... In the December 1998 Bulletin, an article was published that reviewed the business cycle of the 1990s. The article discussed the various economic stresses and strains that impacted on the economy over the cycle. It covered issues such as what actually happened in the economy, which events were likel ...
... In the December 1998 Bulletin, an article was published that reviewed the business cycle of the 1990s. The article discussed the various economic stresses and strains that impacted on the economy over the cycle. It covered issues such as what actually happened in the economy, which events were likel ...
The role of house prices in the monetary policy transmission
... the exchange rate may be a relevant candidate. It plays a significant part in the formulation of monetary policy in the open economy (being an important influence on the overall level of prices), and is itself also influenced by monetary policy. Hence, monetary policy and exchange rate interactions may ...
... the exchange rate may be a relevant candidate. It plays a significant part in the formulation of monetary policy in the open economy (being an important influence on the overall level of prices), and is itself also influenced by monetary policy. Hence, monetary policy and exchange rate interactions may ...
New evidence on the puzzles: Results from agnostic identification
... recursive identifications and impose at most rather mild sign restrictions or shape restrictions a priori. In response to monetary policy shocks they find no robust results regarding the timing of the peak response of the exchange rate, but robust evidence in favor of large deviations from UIP due to ...
... recursive identifications and impose at most rather mild sign restrictions or shape restrictions a priori. In response to monetary policy shocks they find no robust results regarding the timing of the peak response of the exchange rate, but robust evidence in favor of large deviations from UIP due to ...
Responding to the Monetary Superpower
... the ECB and the Fed” (921). Yet, they also point out that, since the creation of the Euro in 1999, innovations in the federal funds rate have Granger caused innovations in the ECB MRO rate and not the other way around, suggesting an influence from the Federal Reserve to the ECB that is not reciproca ...
... the ECB and the Fed” (921). Yet, they also point out that, since the creation of the Euro in 1999, innovations in the federal funds rate have Granger caused innovations in the ECB MRO rate and not the other way around, suggesting an influence from the Federal Reserve to the ECB that is not reciproca ...
Has the Riksbank Been Reacting to Asset Prices?
... 2006: 69-70, 71). In particular, asset prices, specifically real estate, are singled out as areas where the Riksbank has not been clear in its communication. The authors cite the bank’s own motivations for interest rate decisions in 2006, concluding that these could “easily” be interpreted as having ...
... 2006: 69-70, 71). In particular, asset prices, specifically real estate, are singled out as areas where the Riksbank has not been clear in its communication. The authors cite the bank’s own motivations for interest rate decisions in 2006, concluding that these could “easily” be interpreted as having ...
NBER WORKING PAPER SERIES SELF-VALIDATING OPTIMUM CURRENCY AREAS Giancarlo Corsetti Paolo Pesenti
... choose ‘corner’ pricing strategies to prevent their markups from being affected by exchange rate fluctuations.2 There is one equilibrium in which firms choose to preset prices in domestic currency, and let the foreign price adjust according to the law of one price. With complete pass-through, moneta ...
... choose ‘corner’ pricing strategies to prevent their markups from being affected by exchange rate fluctuations.2 There is one equilibrium in which firms choose to preset prices in domestic currency, and let the foreign price adjust according to the law of one price. With complete pass-through, moneta ...
Containing the Crisis, 1983-85
... allow for a resumption of imports while preserving the viability of the balance of payments. In March, Guth wrote to de Larosière with a more specific recommendation, that the banks be encouraged to arrange their financial support operations for two to three years at a time, rather than annually. Ag ...
... allow for a resumption of imports while preserving the viability of the balance of payments. In March, Guth wrote to de Larosière with a more specific recommendation, that the banks be encouraged to arrange their financial support operations for two to three years at a time, rather than annually. Ag ...
The Eurodollar Deposit Market - Digital Commons @ American
... 20. See SARVER, supra note 18, at 10-11 (noting that the Eurodollar markets grew at better than twenty-five percent per annum through the 1970s, and quadrupled in size between 1977 and 1987). 21. See STIGUM, supra note 1, at 210 (explaining that capital export controls enacted in the United States p ...
... 20. See SARVER, supra note 18, at 10-11 (noting that the Eurodollar markets grew at better than twenty-five percent per annum through the 1970s, and quadrupled in size between 1977 and 1987). 21. See STIGUM, supra note 1, at 210 (explaining that capital export controls enacted in the United States p ...
COMMON MARKET FOR EASTERN AND SOUTHERN AFRICAN
... financial sector. As the leading financial institution, it is concerned with the efficiency of intermediation between savers and investor, which takes place via the financial system and contributes to economic growth. Moreover, the structure and development of financial markets affect the transmissi ...
... financial sector. As the leading financial institution, it is concerned with the efficiency of intermediation between savers and investor, which takes place via the financial system and contributes to economic growth. Moreover, the structure and development of financial markets affect the transmissi ...
Monetary Policy And Sustainability: The Case of
... Central banks have wide ranging effects on the economy and society as a whole. Their decisions on monetary policy and sustainability are closely intertwined. Nonetheless, the links between the mandates, objectives and instruments of central banks and a broad sustainability agenda are rarely reflecte ...
... Central banks have wide ranging effects on the economy and society as a whole. Their decisions on monetary policy and sustainability are closely intertwined. Nonetheless, the links between the mandates, objectives and instruments of central banks and a broad sustainability agenda are rarely reflecte ...
announcement proposed private placement of a shares
... shares through the Rights Issue in 2011, The Bank issued 7,753,982,980 among which, 5,273,622,484 shares are ordinary shares through the Rights domestic-listed shares and 2,480,360,496 Issue in 2011, among which, shares are foreign-listed shares. 5,273,622,484 shares are domesticlisted shares and 2, ...
... shares through the Rights Issue in 2011, The Bank issued 7,753,982,980 among which, 5,273,622,484 shares are ordinary shares through the Rights domestic-listed shares and 2,480,360,496 Issue in 2011, among which, shares are foreign-listed shares. 5,273,622,484 shares are domesticlisted shares and 2, ...
The Crisis Management of the ECB - Fritz Breuss
... After the Lehman Brothers crash on 15 September 2008 the industrialized world witnessed a succession of crises. The global financial crisis (GFC) in 2008 triggered the “Great Recession” in 2009 which was followed in Europe by the Euro crisis in 2010. Interestingly, the main causer, the USA recovered ...
... After the Lehman Brothers crash on 15 September 2008 the industrialized world witnessed a succession of crises. The global financial crisis (GFC) in 2008 triggered the “Great Recession” in 2009 which was followed in Europe by the Euro crisis in 2010. Interestingly, the main causer, the USA recovered ...
“Development of an explicit rule of monetary policy for the economy
... The main problem in determining the rule’s basic form is the choice of the key instrument of the monetary policy. The results of the study of the international experience lead to the conclusion regarding the prevalent use of monetary rules for determining the basic interest rates by central banks (T ...
... The main problem in determining the rule’s basic form is the choice of the key instrument of the monetary policy. The results of the study of the international experience lead to the conclusion regarding the prevalent use of monetary rules for determining the basic interest rates by central banks (T ...
an External Instruments Approach
... from recursive identification methods that instead detect a rise in inflation in response to an unexpected tightening in monetary policy, an empirical phenomenon labeled “price puzzle,” originally established by Sims (1992) on U.K. data.5 We show that the counterfactual increase in inflation detect ...
... from recursive identification methods that instead detect a rise in inflation in response to an unexpected tightening in monetary policy, an empirical phenomenon labeled “price puzzle,” originally established by Sims (1992) on U.K. data.5 We show that the counterfactual increase in inflation detect ...
Effects of changes in the official interest rate in an inflation
... aggregate demand shock, the government could dampen aggregate demand by ...
... aggregate demand shock, the government could dampen aggregate demand by ...
Pages: 64
... rarely analyzed using the instruments of institutional economics and polical economy (generally it is treated conventionally within the framework of mainstream macroeconomic theory).2 Monetary theory and institutional analysis are still developing independently of each other. Considering MR change a ...
... rarely analyzed using the instruments of institutional economics and polical economy (generally it is treated conventionally within the framework of mainstream macroeconomic theory).2 Monetary theory and institutional analysis are still developing independently of each other. Considering MR change a ...
Bank for International Settlements
The Bank for International Settlements (BIS; French: Banque des règlements internationaux, BRI) is an international company limited by shares owned by central banks which ""fosters international monetary and financial cooperation and serves as a bank for central banks"".The BIS carries out its work through subcommittees, the secretariats it hosts and through an annual general meeting of all member banks. It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.