Working Paper No. 444 Asset purchase policy at the effective lower
... channel through which asset purchases by the policymaker can affect aggregate demand. Because assets are imperfect substitutes, central bank asset purchases that alter the relative supplies of assets can influence their prices. In the model, aggregate demand depends on the prices (or interest rates) ...
... channel through which asset purchases by the policymaker can affect aggregate demand. Because assets are imperfect substitutes, central bank asset purchases that alter the relative supplies of assets can influence their prices. In the model, aggregate demand depends on the prices (or interest rates) ...
Goal-Independent Central Banks
... The game has a zero-sum element, so that the bene…t of forming a broad coalition is obvious: the largest coalition is the one that sets policy. The cost of coalition formation lies in the second stage of the game: individual factions within coalitions must engage in (potentially costly) political lo ...
... The game has a zero-sum element, so that the bene…t of forming a broad coalition is obvious: the largest coalition is the one that sets policy. The cost of coalition formation lies in the second stage of the game: individual factions within coalitions must engage in (potentially costly) political lo ...
Wage Setting Patterns and Monetary Policy: International Evidence No. 10-8
... expiration and wage reopening dates for collective bargaining activity does not show a pronounced seasonality.11 Given the decline in unionization rates, this pattern is unlikely to detract much from the apparently common practice of yearly wage adjustments at the end of a firm’s fiscal year. In all ...
... expiration and wage reopening dates for collective bargaining activity does not show a pronounced seasonality.11 Given the decline in unionization rates, this pattern is unlikely to detract much from the apparently common practice of yearly wage adjustments at the end of a firm’s fiscal year. In all ...
mmi06 sturm 1923488 en
... comprehensive summary of the policy-relevant assessment of economic developments. It is structured along the lines of the ECB’s monetary policy strategy and agreed by the Governing Council.” Thus, the information provided in the introductory statement allows answering a number of questions. For ins ...
... comprehensive summary of the policy-relevant assessment of economic developments. It is structured along the lines of the ECB’s monetary policy strategy and agreed by the Governing Council.” Thus, the information provided in the introductory statement allows answering a number of questions. For ins ...
DP2001/07 Is the Taylor rule really different from the McCallum rule?
... FFR. With this rule, the money-base growth rate changes in response to deviation of the nominal GDP growth rate (or the level) from a desired target value that grows at a specified rate. The rule also allows for gradual changes in base velocity. Nominal GDP targeting and money base targeting are equ ...
... FFR. With this rule, the money-base growth rate changes in response to deviation of the nominal GDP growth rate (or the level) from a desired target value that grows at a specified rate. The rule also allows for gradual changes in base velocity. Nominal GDP targeting and money base targeting are equ ...
NBER WORKING PAPER SERIES PRICE STABILITY VS. LOW INFLATION
... and prices, a relationship which is soundly based on the quantity theory and proven empirically.10 Since 1988 the Bundesbank has used the money stock in the definition M31' as the indicator and intermediate target of its monetary policy. ...
... and prices, a relationship which is soundly based on the quantity theory and proven empirically.10 Since 1988 the Bundesbank has used the money stock in the definition M31' as the indicator and intermediate target of its monetary policy. ...
6. Conclusions
... important. Traditionally, its level has influenced the opportunity cost of capital and the availability of credit in the economy. In the context of financial innovation and deregulation, one may argue whether this is the case today. There is a significant amount of literature that analyzes monetary ...
... important. Traditionally, its level has influenced the opportunity cost of capital and the availability of credit in the economy. In the context of financial innovation and deregulation, one may argue whether this is the case today. There is a significant amount of literature that analyzes monetary ...
DRAFT – DO NOT QUOTE WITHOUT PERMISSION KNIGHTIAN UNCERTAINTY
... data are frequently revised. Policy made on the basis of first-release data may not look optimal by the time the data have been revised. It is also possible that with the help of coincident indicators, which are not subject to the same measurement problems, policy makers could have a better view of ...
... data are frequently revised. Policy made on the basis of first-release data may not look optimal by the time the data have been revised. It is also possible that with the help of coincident indicators, which are not subject to the same measurement problems, policy makers could have a better view of ...
Monetary Policy Rules: from Adam Smith to John
... When new rational expectations methods led to real business cycle models without a role for monetary policy, this was a “tough time”: the "dark ages" for monetary policy rules research (Taylor 2005). Small group of monetary economists saw themselves as "toiling in the vineyards" (McCallum 1999). A r ...
... When new rational expectations methods led to real business cycle models without a role for monetary policy, this was a “tough time”: the "dark ages" for monetary policy rules research (Taylor 2005). Small group of monetary economists saw themselves as "toiling in the vineyards" (McCallum 1999). A r ...
The Quest for Prosperity Without Inflation
... These rules prescribe that monetary policy respond to inflation and the level of economic activity. Advocates of such policies suggest that these rules provide a flexibility that yields substantial stabilization benefits but simultaneously maintain a discipline which avoids the excesses of overzealo ...
... These rules prescribe that monetary policy respond to inflation and the level of economic activity. Advocates of such policies suggest that these rules provide a flexibility that yields substantial stabilization benefits but simultaneously maintain a discipline which avoids the excesses of overzealo ...
Prepared for the Sveriges Riksbank Monetary Policy
... These rules prescribe that monetary policy respond to inflation and the level of economic activity. Advocates of such policies suggest that these rules provide a flexibility that yields substantial stabilization benefits but simultaneously maintain a discipline which avoids the excesses of overzealo ...
... These rules prescribe that monetary policy respond to inflation and the level of economic activity. Advocates of such policies suggest that these rules provide a flexibility that yields substantial stabilization benefits but simultaneously maintain a discipline which avoids the excesses of overzealo ...
NBER WORKING PAPER SERIES ENDOGENOUS MONETARY POLICY REGIME CHANGE Troy Davig
... Perhaps the most important advance in the monetary policy literature over the past 20 years is the explicit recognition that policy behavior is purposeful and responds endogenously to the state of the economy. Substantial progress has been made by research that examines how various monetary policy r ...
... Perhaps the most important advance in the monetary policy literature over the past 20 years is the explicit recognition that policy behavior is purposeful and responds endogenously to the state of the economy. Substantial progress has been made by research that examines how various monetary policy r ...
:25.,1*3$3(56(5,(6 :25.,1*3$3(512 7+(48(67)25 35263(5,7<
... policy rules is indeed illusory. The apparent improvement in economic performance that these rules suggest over alternative policies that ignore completely short-run stabilization objectives can be attributed to unrealistic informational assumptions regarding the knowledge policymakers can reasonabl ...
... policy rules is indeed illusory. The apparent improvement in economic performance that these rules suggest over alternative policies that ignore completely short-run stabilization objectives can be attributed to unrealistic informational assumptions regarding the knowledge policymakers can reasonabl ...
Nominal GDP Targeting and the Tax Burden
... is stabilised. Intuitively, since output equals the tax base, the tax rate has to vary inversely with output shocks in order to maintain real government spending. However, since nominal GDP targeting makes the debt burden positively related to current output, it induces a positive correlation betwee ...
... is stabilised. Intuitively, since output equals the tax base, the tax rate has to vary inversely with output shocks in order to maintain real government spending. However, since nominal GDP targeting makes the debt burden positively related to current output, it induces a positive correlation betwee ...
UK monetary and credit policy after the Radcliffe Report
... of the whole economy’, of which the supply of money was merely a part. In the twenty years that followed Radcliffe, alternative monetary policy tools included debt management, calls for special deposits (similar to remunerated reserve requirements), restrictions on the terms of hire purchase lending ...
... of the whole economy’, of which the supply of money was merely a part. In the twenty years that followed Radcliffe, alternative monetary policy tools included debt management, calls for special deposits (similar to remunerated reserve requirements), restrictions on the terms of hire purchase lending ...
NBER WORKING PAPER SERIES A FISCAL THEORY OF SOVEREIGN RISK Martín Uribe
... peg the price level. Under this monetary regime, the government cannot use the price level as a shock absorber of negative fiscal shocks. Specifically, by sticking to a price level target, the government gives up its ability to inflate away part of the real value of public debt via surprise inflation in ...
... peg the price level. Under this monetary regime, the government cannot use the price level as a shock absorber of negative fiscal shocks. Specifically, by sticking to a price level target, the government gives up its ability to inflate away part of the real value of public debt via surprise inflation in ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... theory. However, since total government debt rather than the supply of transactions-facilitating assets appears on the left, fiscal price-level determination is immune to financial innovation, including elastically provided private media of exchange, and even a cashless or frictionless economy. More ...
... theory. However, since total government debt rather than the supply of transactions-facilitating assets appears on the left, fiscal price-level determination is immune to financial innovation, including elastically provided private media of exchange, and even a cashless or frictionless economy. More ...
Central Bank Communication and Expectations Stabilization
... The second communication strategy reduces the information made available about policy deliberations relative to the previous full-information case. Rather than convey the precise policy rule, the central bank only announces the set of variables on which nominal interest rates are conditioned. Hence, ...
... The second communication strategy reduces the information made available about policy deliberations relative to the previous full-information case. Rather than convey the precise policy rule, the central bank only announces the set of variables on which nominal interest rates are conditioned. Hence, ...
NBER WORKING PAPER SERIES SIMPLE AND ROBUST RULES FOR MONETARY POLICY
... (1993) volume, the Taylor (1999a) volume, the Woodford (2003) volume, and many more models now in the growing database maintained by Volker Wieland (see Taylor and Wieland, 2009). Many of these models go under the name “new Keynesian” or “new neoclassical synthesis” or sometimes “dynamic stochastic ...
... (1993) volume, the Taylor (1999a) volume, the Woodford (2003) volume, and many more models now in the growing database maintained by Volker Wieland (see Taylor and Wieland, 2009). Many of these models go under the name “new Keynesian” or “new neoclassical synthesis” or sometimes “dynamic stochastic ...
Simple and Robust Rules for Monetary Policy
... (1993) volume, the Taylor (1999a) volume, the Woodford (2003) volume, and many more models now in the growing database maintained by Volker Wieland (see Taylor and Wieland, 2009). Many of these models go under the name “new Keynesian” or “new neoclassical synthesis” or sometimes “dynamic stochastic ...
... (1993) volume, the Taylor (1999a) volume, the Woodford (2003) volume, and many more models now in the growing database maintained by Volker Wieland (see Taylor and Wieland, 2009). Many of these models go under the name “new Keynesian” or “new neoclassical synthesis” or sometimes “dynamic stochastic ...
Leaning Against Boom-Bust Cycles in Credit and Housing Prices Luisa Lambertini
... of Gomes and Mendicino (2011) showing that news shocks explain a sizable fraction of variation in house prices and other macroeconomic variable and signi…cantly contributed to all episodes of housing booms in the US over the last four decades. The goal of this paper is to assess alternative policies ...
... of Gomes and Mendicino (2011) showing that news shocks explain a sizable fraction of variation in house prices and other macroeconomic variable and signi…cantly contributed to all episodes of housing booms in the US over the last four decades. The goal of this paper is to assess alternative policies ...
The performance and robustness of interest-rate rules in
... of aggregate supply and aggregate demand which is designed to capture the broad characteristics of inflation and output dynamics in the euro area. Since its development, the model has been mainly used as a laboratory for evaluating the performance of alternative monetary policy strategies. The supply ...
... of aggregate supply and aggregate demand which is designed to capture the broad characteristics of inflation and output dynamics in the euro area. Since its development, the model has been mainly used as a laboratory for evaluating the performance of alternative monetary policy strategies. The supply ...
Monetary policy rule for China: 1994-2006
... policy rule. The optimal monetary policy rule can be obtained by analyzing the optimal behavior of central bank in context of loss function and macroeconomic structure restraint. The other is to set the monetary policy rule exogenously, that is, let instruments variables respond to inflation, output ...
... policy rule. The optimal monetary policy rule can be obtained by analyzing the optimal behavior of central bank in context of loss function and macroeconomic structure restraint. The other is to set the monetary policy rule exogenously, that is, let instruments variables respond to inflation, output ...
Euro Plus Pact
The Euro-Plus Pact (or Euro+ Pact, also initially called the Competitiveness Pact or later the Pact for the Euro), was adopted in March 2011 under EU's Open Method of Coordination, as an intergovernmental agreement between all member states of the European Union (except Croatia, Czech Republic, Hungary, Sweden and UK), in which concrete commitments were made to be working continuously within a new commonly agreed political general framework for the implementation of structural reforms intended to improve competitiveness, employment, financial stability and the fiscal strength of each country. The plan was advocated by the French and German governments as one of many needed political responses to strengthen the EMU in areas which the European sovereign-debt crisis had revealed as being too poorly constructed.The pact was constructed as an attempt to incentivize increased implementation of structural reforms by each participating EU member state, to improve their performance within the four focus areas of the pact, through: (1) A regular bottom-up inter-governmental political dialogue (learning best practices from each other) and (2) A commitment for each state to include reform measures (freely chosen from a broad list of potential policy action responses) in their annual National Reform Programme for those of the areas found in critical need of improvement. In addition, it also featured a commitment to transpose and operationalize one of the Stability and Growth Pact fiscal rules directly into national legislation - to make it more effectively working, and a commitment to perform regular ""structured dialogue"" for enhanced tax policy coordination in EU.In May 2015, the European Political Strategy Centre (in-house think tank of the European Commission) upon its analysis of the latest set of submitted National Reform Programmes, declared the pact was in a dormant state (not being actively used or referred to by the majority of participating states), and recommended it should be revived by moving it from its current intergovernmental state to become an integrated part of the European Semester in the EU framework law. In the latest approved plan for reforming the EMU, this recommendation was adopted with a target for its transposition to take place at the latest in June 2017.