This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... It is sometimes argued that increased integration of international financial markets should imply that interest rates in each country will come to be determined largely by world conditions rather than domestic conditions. It is then feared that as a result, domestic monetary policy will come to have ...
... It is sometimes argued that increased integration of international financial markets should imply that interest rates in each country will come to be determined largely by world conditions rather than domestic conditions. It is then feared that as a result, domestic monetary policy will come to have ...
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... monetary shocks before and after 1994, showing that the bank rate is more effective than reserve money as policy instrument. Mwabutwa et al (2013) revealed that between 2000 and 2010, private credit supply remained weak in the monetary policy transmission. Nevertheless, none of these papers analyzed ...
... monetary shocks before and after 1994, showing that the bank rate is more effective than reserve money as policy instrument. Mwabutwa et al (2013) revealed that between 2000 and 2010, private credit supply remained weak in the monetary policy transmission. Nevertheless, none of these papers analyzed ...
Monetary/Fiscal Interactions: Nominal Indeterminacy
... Neoclassical models of long-run equilibrium (with no nominal rigidity) re‡ect the same fundamental view in a more sophisticated setting Classical Monetary Theory was about how monetary conditions pin down the price level and other nominal variables The Quantity Theory of Money (MV = PY ) was typical ...
... Neoclassical models of long-run equilibrium (with no nominal rigidity) re‡ect the same fundamental view in a more sophisticated setting Classical Monetary Theory was about how monetary conditions pin down the price level and other nominal variables The Quantity Theory of Money (MV = PY ) was typical ...
Monetary Policy Implementation: Operational Issues for
... reduce the interest rate sensitivity of the commercial banks demand for central bank balances, and thus make the market less sensitive to liquidity forecasting errors (Box 1). Central banks can also use other tools such as reserve requirement averaging provisions (below) to flatten the demand for re ...
... reduce the interest rate sensitivity of the commercial banks demand for central bank balances, and thus make the market less sensitive to liquidity forecasting errors (Box 1). Central banks can also use other tools such as reserve requirement averaging provisions (below) to flatten the demand for re ...
Forecasting commodity currencies: the role of
... to the end-of-month change in the exchange rate. Using the so-called MIxed DAta Sampling (MIDAS) framework, each daily observation on price fluctuations can have a different weight or impact on the end-of-month observation on the exchange rate change. The MIDAS regression is a simple, parsimonious, ...
... to the end-of-month change in the exchange rate. Using the so-called MIxed DAta Sampling (MIDAS) framework, each daily observation on price fluctuations can have a different weight or impact on the end-of-month observation on the exchange rate change. The MIDAS regression is a simple, parsimonious, ...
Macroeconomic Review April 2017 Vol XVI Issue 1
... 11. The Singapore economy will continue to expand at a modest pace in 2017. MAS Core Inflation is envisaged to rise gradually, largely on account of higher global oil prices. However, demand-driven inflationary pressures will likely be restrained. Over the medium term, core inflation is expected to ...
... 11. The Singapore economy will continue to expand at a modest pace in 2017. MAS Core Inflation is envisaged to rise gradually, largely on account of higher global oil prices. However, demand-driven inflationary pressures will likely be restrained. Over the medium term, core inflation is expected to ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... 1. Inflation is a monetary phenomenon: Fed officials often blamed inflation on labor unions, monopolistic pricing, energy price shocks, and government budget deficits and dismissed the notion that money growth and inflation are closely connected. Burns, for example, testified in 1974 that “[t]he role ...
... 1. Inflation is a monetary phenomenon: Fed officials often blamed inflation on labor unions, monopolistic pricing, energy price shocks, and government budget deficits and dismissed the notion that money growth and inflation are closely connected. Burns, for example, testified in 1974 that “[t]he role ...
b. The interest rate.
... When the interest rate is above the equilibrium interest rate: a. People will move out of bonds and into money—hold larger cash balances. b. The quantity of money demanded is too high to achieve equilibrium. c. The quantity of money demanded is greater than the quantity of money supplied. d. There i ...
... When the interest rate is above the equilibrium interest rate: a. People will move out of bonds and into money—hold larger cash balances. b. The quantity of money demanded is too high to achieve equilibrium. c. The quantity of money demanded is greater than the quantity of money supplied. d. There i ...
Losing Our Marbles in the New Century? Perspective
... Of course, this kind of scenario can cause umbrage among the creditors: those nations in the rest of the world who run persistent net trade surpluses are “winners” in a mercantilist sense, but gain nothing from this situation as they give back, in the form of net investment income flows, their “marbl ...
... Of course, this kind of scenario can cause umbrage among the creditors: those nations in the rest of the world who run persistent net trade surpluses are “winners” in a mercantilist sense, but gain nothing from this situation as they give back, in the form of net investment income flows, their “marbl ...
Principles of Economics, Case and Fair,9e
... When the interest rate is above the equilibrium interest rate: a. People will move out of bonds and into money—hold larger cash balances. b. The quantity of money demanded is too high to achieve equilibrium. c. The quantity of money demanded is greater than the quantity of money supplied. d. There i ...
... When the interest rate is above the equilibrium interest rate: a. People will move out of bonds and into money—hold larger cash balances. b. The quantity of money demanded is too high to achieve equilibrium. c. The quantity of money demanded is greater than the quantity of money supplied. d. There i ...
Monetary Magic? How the Fed Improved the Flexibility of the
... policy have played a central role.2 Estimated monetary policy rules suggest that through much of the 1970s the Federal Reserve pursued a policy that accommodated inflationary shocks in the United States, leading to instability in the economy as real rates responded perversely to inflationary disturb ...
... policy have played a central role.2 Estimated monetary policy rules suggest that through much of the 1970s the Federal Reserve pursued a policy that accommodated inflationary shocks in the United States, leading to instability in the economy as real rates responded perversely to inflationary disturb ...
Hitotsubashi ICS-FS Working Paper Series Exiting from QE
... an SVAR (structural vector autoregression) to study the macroeconomic effects of QE. Reliably estimating such a time-series model is difficult because only several years have passed since the adoptation of QE by central banks around the world. We are thus led to examine Japan, a country that has acc ...
... an SVAR (structural vector autoregression) to study the macroeconomic effects of QE. Reliably estimating such a time-series model is difficult because only several years have passed since the adoptation of QE by central banks around the world. We are thus led to examine Japan, a country that has acc ...
NBER WORKING PAPER SERIES GLOBAL ECONOMIC ARCHITECTURE
... Practically all the increase in reserves-GDP holding has taken place in developing countries, mostly concentrating in East Asia. The magnitude of the changes during the last twenty years is mind-boggling: global reserves increased from about 1 trillion US dollar in 1990, to more than 5 trillion US d ...
... Practically all the increase in reserves-GDP holding has taken place in developing countries, mostly concentrating in East Asia. The magnitude of the changes during the last twenty years is mind-boggling: global reserves increased from about 1 trillion US dollar in 1990, to more than 5 trillion US d ...
2005 - Boston University
... that fluctuates through time in response to macroeconomic shocks to productivity, government expenditures, tax rates, energy prices, etc. Holding expectations fixed, the pricing equation implies that an increase in real output brought about by a monetary expansion will increase inflation, since capacit ...
... that fluctuates through time in response to macroeconomic shocks to productivity, government expenditures, tax rates, energy prices, etc. Holding expectations fixed, the pricing equation implies that an increase in real output brought about by a monetary expansion will increase inflation, since capacit ...
COMMON MARKET FOR EASTERN AND SOUTHERN AFRICAN
... policy even though it will not produce higher growth and employment in the long-run because economic agents adjust their wage and price expectations upward to reflect the expansionary policy. Unfortunately, however, the expansionary monetary policy will lead to higher inflation in the long-run, with ...
... policy even though it will not produce higher growth and employment in the long-run because economic agents adjust their wage and price expectations upward to reflect the expansionary policy. Unfortunately, however, the expansionary monetary policy will lead to higher inflation in the long-run, with ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Monetary Policy Rules
... description of monetary policy in a fixed money growth regime. However, the monetary policy rule also provides a useful framework in many other situations. International Gold Standard. Important for our historical purposes is that such a relationship also exists in the case of an international gold ...
... description of monetary policy in a fixed money growth regime. However, the monetary policy rule also provides a useful framework in many other situations. International Gold Standard. Important for our historical purposes is that such a relationship also exists in the case of an international gold ...
Challenges of COMESA Monetary Integration
... (iii) the removal of restrictions on both imports and exports; ...
... (iii) the removal of restrictions on both imports and exports; ...
A Model of the Twin Ds: Optimal Default and Devaluation ∗ S. Na
... the joint occurrence of large devaluations and sovereign default. An additional benefit of considering the decentralized version of the Eaton-Gersovitz economy is that it allows for the characterization of the equilibrium allocation when the devaluation policy is not set optimally. Motivated by the ...
... the joint occurrence of large devaluations and sovereign default. An additional benefit of considering the decentralized version of the Eaton-Gersovitz economy is that it allows for the characterization of the equilibrium allocation when the devaluation policy is not set optimally. Motivated by the ...
The impact of oil price on the stability of money demand in Saudi
... economy. In this respect the stability of money demand equation plays an important role in determining which monetary policy tools can be the best choice and target for Central Banks. To this end, monetary policy would target the interest rate if the aggregate demand shocks come from changes in mone ...
... economy. In this respect the stability of money demand equation plays an important role in determining which monetary policy tools can be the best choice and target for Central Banks. To this end, monetary policy would target the interest rate if the aggregate demand shocks come from changes in mone ...
NBER WORKING PAPER SERIES Takatoshi Ito Working Paper 15726
... increased more than 200 times in a few years, was a result of the devastation of productive capacity and deficit financing cum monetization, which followed the end of WW II. So the 1973-74 was the only example of high inflation unrelated to a war that Japan was involved. The main focus of this paper ...
... increased more than 200 times in a few years, was a result of the devastation of productive capacity and deficit financing cum monetization, which followed the end of WW II. So the 1973-74 was the only example of high inflation unrelated to a war that Japan was involved. The main focus of this paper ...
What is the neutral real interest rate, and how can we use it
... inflation expectations, exchange rate pass-through, or changes in price-setting behaviour. For working purposes, we define the NRR as the interest rate that would prevail if there were no inflationary or deflationary pressures requiring the central bank to lean in either direction. In other words, ...
... inflation expectations, exchange rate pass-through, or changes in price-setting behaviour. For working purposes, we define the NRR as the interest rate that would prevail if there were no inflationary or deflationary pressures requiring the central bank to lean in either direction. In other words, ...
Uncollateralized Overnight Loans Settled in LVTS
... methodology he used to identify federal funds loans from Fedwire (U.S. large value payment system). He identified candidate federal funds sales as all payments whose amounts are greater than $1 million and rounded to the nearest $100,000. If, for example, Bank A sent Bank B $1 million, then the next ...
... methodology he used to identify federal funds loans from Fedwire (U.S. large value payment system). He identified candidate federal funds sales as all payments whose amounts are greater than $1 million and rounded to the nearest $100,000. If, for example, Bank A sent Bank B $1 million, then the next ...
Money supply and the implementation of interest rate targets
... characterized by a positive income elasticity. Hence, a nominal interest rate target that rises with inflation (and output), is associated with money growth rates also rising with inflation (and output). As long as prices are flexible, forward-looking interest rate rules and state contingent reactio ...
... characterized by a positive income elasticity. Hence, a nominal interest rate target that rises with inflation (and output), is associated with money growth rates also rising with inflation (and output). As long as prices are flexible, forward-looking interest rate rules and state contingent reactio ...
Inflation Dynamics and Food Prices in an
... non-food prices adjust to changes in world producer prices. There are large deviations from long-run equilibrium prices, mainly due to the importance of the domestic market for agricultural products and inflation inertia. Domestic food supply shocks along with inertial factors have a strong effect o ...
... non-food prices adjust to changes in world producer prices. There are large deviations from long-run equilibrium prices, mainly due to the importance of the domestic market for agricultural products and inflation inertia. Domestic food supply shocks along with inertial factors have a strong effect o ...