NBER WORKING PAPER SERIES CAN CENTRAL BANK TRANSPARENCY GO TOO FAR?
... the inflation target is unable to send immediate signals to both the public and the markets as to whether the current stance of money is appropriate. Because as equation 5 and 6 illustrate, optimal monetary policy involves “inflation forecast targeting”, publication of forecasts provides immediate ...
... the inflation target is unable to send immediate signals to both the public and the markets as to whether the current stance of money is appropriate. Because as equation 5 and 6 illustrate, optimal monetary policy involves “inflation forecast targeting”, publication of forecasts provides immediate ...
Understanding the Great Recession ! Lawrence J. Christiano Martin S. Eichenbaum
... reduction in consumption as a trigger for a zero lower bound (ZLB) episode (see Eggertsson and Woodford (2003), Eggertsson and Krugman (2012) and Guerrieri and Lorenzoni (2012)). The third shock in our analysis is a neutral technology shock that captures the observed decline, relative to trend, in ...
... reduction in consumption as a trigger for a zero lower bound (ZLB) episode (see Eggertsson and Woodford (2003), Eggertsson and Krugman (2012) and Guerrieri and Lorenzoni (2012)). The third shock in our analysis is a neutral technology shock that captures the observed decline, relative to trend, in ...
Implications of the inflation targeting strategy in some of the
... throughout the academic literature, especially after 1988, when New Zealand became the first country that has used the implementation of such a strategy in order to achieve price stability. Taking into account the long period throughout which this strategy has been applied, the New Zealand model has ...
... throughout the academic literature, especially after 1988, when New Zealand became the first country that has used the implementation of such a strategy in order to achieve price stability. Taking into account the long period throughout which this strategy has been applied, the New Zealand model has ...
EU Economy Review 2006 – Adjustment Dynamics in the Euro Area
... The economic model is designed to explore interactions between each national economy and the remainder of the euro area. In particular, it analyses how the traded and non-traded goods sectors behave, and it identifies separately developments in residential investment. A brief description of the mode ...
... The economic model is designed to explore interactions between each national economy and the remainder of the euro area. In particular, it analyses how the traded and non-traded goods sectors behave, and it identifies separately developments in residential investment. A brief description of the mode ...
Rethinking Reforms -How Latin America and the Caribbean Can
... the currency union. Obstacles on the way to these objectives may lead to greater uncertainty and lower growth.11 Growth in Japan has been weighed down by structural issues as well as high levels of debt.12 Monetary policy has been highly accommodating with short-term interest rates at the zero bound ...
... the currency union. Obstacles on the way to these objectives may lead to greater uncertainty and lower growth.11 Growth in Japan has been weighed down by structural issues as well as high levels of debt.12 Monetary policy has been highly accommodating with short-term interest rates at the zero bound ...
How Do Monetary and Fiscal Policy Shocks Explain US
... shock. Edelberg et al. (1999) and Mountford and Uhlig (2009) provide evidence that the response of private consumption is close to zero and statistically insigni…cant over the entire impulse response horizon. Ramey (2011) …nds evidence that private consumption persistently and signi…cantly falls ove ...
... shock. Edelberg et al. (1999) and Mountford and Uhlig (2009) provide evidence that the response of private consumption is close to zero and statistically insigni…cant over the entire impulse response horizon. Ramey (2011) …nds evidence that private consumption persistently and signi…cantly falls ove ...
Chapter 14
... After studying this chapter, you will able to Distinguish between inflation and a one-time rise in the price level Explain how demand-pull inflation is generated Explain how cost-push inflation is generated Describe the effects of inflation Explain the short-run and long-run relationships ...
... After studying this chapter, you will able to Distinguish between inflation and a one-time rise in the price level Explain how demand-pull inflation is generated Explain how cost-push inflation is generated Describe the effects of inflation Explain the short-run and long-run relationships ...
Inflation During and After the Zero Lower Bound
... Multiplicity of equilibria is both a blessing and a curse. It is a blessing for empirical researchers who are trying to explain very different macroeconomic experiences, say in the U.S. and Japan, with a single economic model. It is a curse for policy makers, because the same monetary policy action ...
... Multiplicity of equilibria is both a blessing and a curse. It is a blessing for empirical researchers who are trying to explain very different macroeconomic experiences, say in the U.S. and Japan, with a single economic model. It is a curse for policy makers, because the same monetary policy action ...
Working Paper No. 385 Macroeconomic Policies of the Economic
... some recovery expected in 2004. A similar pattern is evident in the cases of the U.S. economy and Britain (where the situation does not appear to be as bad). However, it is the U.S. growth rate expected at 3.4 and 3.6 percent in 2003 and 2004 respectively, against the euro area's 1.0 and 2.3 percent ...
... some recovery expected in 2004. A similar pattern is evident in the cases of the U.S. economy and Britain (where the situation does not appear to be as bad). However, it is the U.S. growth rate expected at 3.4 and 3.6 percent in 2003 and 2004 respectively, against the euro area's 1.0 and 2.3 percent ...
English - Inter-American Development Bank
... explaining credit. Bárcenas, Chirinos and Pagliacci (2013) and Chirinos and Pagliacci (2014) show that, for the exchange rate control period, positive oil shocks and high levels of imports are observed to deliver a credit glut with significant (nominal and real) credit growth and dropping interest r ...
... explaining credit. Bárcenas, Chirinos and Pagliacci (2013) and Chirinos and Pagliacci (2014) show that, for the exchange rate control period, positive oil shocks and high levels of imports are observed to deliver a credit glut with significant (nominal and real) credit growth and dropping interest r ...
Review - November / December 1998
... on real growth.2 Small differences amount to a lot over long periods because of compounding. Thus, it may not be an accident of history that the most highly industrialized economies with the highest per capita income today have had comparatively low inflation over extended periods. With respect to c ...
... on real growth.2 Small differences amount to a lot over long periods because of compounding. Thus, it may not be an accident of history that the most highly industrialized economies with the highest per capita income today have had comparatively low inflation over extended periods. With respect to c ...
The Money Supply and the Federal Reserve System
... through A) an increase in GDP. B) an increase in the price level. C) a decrease in interest rates. D) an increase in money supply. Answer: D ...
... through A) an increase in GDP. B) an increase in the price level. C) a decrease in interest rates. D) an increase in money supply. Answer: D ...
What Ends Recessions? - University of California, Berkeley
... This examinationof movements in interest rates suggests that monetary policy could play a critical role in recoveries: There are large, consistent declines in interest rates during recessions. Whether these declines reflect deliberate countercyclical policy, and whether their timing and magnitude ar ...
... This examinationof movements in interest rates suggests that monetary policy could play a critical role in recoveries: There are large, consistent declines in interest rates during recessions. Whether these declines reflect deliberate countercyclical policy, and whether their timing and magnitude ar ...
NBER WORKING PAPER SERIES HAS GLOBALIZATION CHANGED INFLATION? Laurence M. Ball
... in specification, the effects of foreign gaps disappear for most countries. As a quick check on this issue, I estimated Phillips curves with the data from Ihrig et al., which cover 14 industrial countries. ...
... in specification, the effects of foreign gaps disappear for most countries. As a quick check on this issue, I estimated Phillips curves with the data from Ihrig et al., which cover 14 industrial countries. ...
NBER WORKING PAPER SERIES Matthew Canzoneri
... contractionary open-market operation; this has implications for interest-rate surprises and for the systematic component of the interest-rate rule governing monetary policy. A standard neo-Wicksellian model is embedded within our model. It is obtained by stripping out the banks and assuming that onl ...
... contractionary open-market operation; this has implications for interest-rate surprises and for the systematic component of the interest-rate rule governing monetary policy. A standard neo-Wicksellian model is embedded within our model. It is obtained by stripping out the banks and assuming that onl ...
Inflation in Developing Asia: Demand-Pull or Cost
... into complacency. Is it possible that developing Asia’s inflation may be of the demand-pull variety in which excess aggregate demand leads to rising prices? The answer to that question has enormous implications for monetary policy in the region. The answer uncovered through econometric analysis is t ...
... into complacency. Is it possible that developing Asia’s inflation may be of the demand-pull variety in which excess aggregate demand leads to rising prices? The answer to that question has enormous implications for monetary policy in the region. The answer uncovered through econometric analysis is t ...
Lecture 4 - The Digital Economist
... indirectly as imputed rent that an individual would pay to himself in the case of owner occupied housing. In the latter case the homeowner acts as both tenant and landlord with no actual payment changing hands but imputed expenditure being included in the services category to reflect the value of th ...
... indirectly as imputed rent that an individual would pay to himself in the case of owner occupied housing. In the latter case the homeowner acts as both tenant and landlord with no actual payment changing hands but imputed expenditure being included in the services category to reflect the value of th ...
Università degli Studi di Milano Dipartimento di Economia Politica e
... To provide insurance against variations in the debt ratio due to lower economic growth, public bonds should be indexed to nominal GDP. However, this would be a costly innovation. Indeed, a high premium would have to be paid: i) for insurance; ii) for the illiquidity of the market and; iii) for the d ...
... To provide insurance against variations in the debt ratio due to lower economic growth, public bonds should be indexed to nominal GDP. However, this would be a costly innovation. Indeed, a high premium would have to be paid: i) for insurance; ii) for the illiquidity of the market and; iii) for the d ...
NBER WORKING PAPER SERIES Peter N. Ireland Working Paper 16681
... EA have both experienced extended departures from the type of balanced growth that appears in the traditional one-sector stochastic growth model studied by King, Plosser, Stock, and Watson (1991), these departures have taken the two economies in totally different directions: in the US, real investm ...
... EA have both experienced extended departures from the type of balanced growth that appears in the traditional one-sector stochastic growth model studied by King, Plosser, Stock, and Watson (1991), these departures have taken the two economies in totally different directions: in the US, real investm ...
Working Paper No. 563 Whither New Consensus Macroeconomics
... outcome of their actions has adverse macroeconomic effects. On this basis, activist government actions are then justified to eliminate or limit some of these effects. In terms of the mechanics of the model, price and wage stickiness play a key role in relating the monetary policy rule to the IS-type ...
... outcome of their actions has adverse macroeconomic effects. On this basis, activist government actions are then justified to eliminate or limit some of these effects. In terms of the mechanics of the model, price and wage stickiness play a key role in relating the monetary policy rule to the IS-type ...
Chapter 13
... React to exchange rate movements, such as when the foreign currency appears to be undervalued. DFI can also help reduce the MNC’s exposure to exchange rate fluctuations. ...
... React to exchange rate movements, such as when the foreign currency appears to be undervalued. DFI can also help reduce the MNC’s exposure to exchange rate fluctuations. ...
The Federal Reserve`s Dual Mandate: Balancing Act or Inflation
... maximum employment, production, and price stability.” A year later, lawmakers reaffirmed but reworded the mandate to its current language: “to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” The employment and price stability objectives are ...
... maximum employment, production, and price stability.” A year later, lawmakers reaffirmed but reworded the mandate to its current language: “to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” The employment and price stability objectives are ...
Inflation
... • The inflation rate is the annual percentage increase in the price level. • In the U.S., as long as the inflation rate from year to year stays at around 3% per year, Americans are satisfied that the goal of low inflation has been accomplished. • If the inflation rate is above 3%, people expect the ...
... • The inflation rate is the annual percentage increase in the price level. • In the U.S., as long as the inflation rate from year to year stays at around 3% per year, Americans are satisfied that the goal of low inflation has been accomplished. • If the inflation rate is above 3%, people expect the ...
NBER WORKING PAPER SERIES CAN SEVERE FISCAL CONTRACTIONS BE EXPANSIONARY?
... Ireland, Denmark, Sweden and Belgium, while most of the action in Germany came from cuts in current spending. In the Netherlands the effect of reduced government expenditure was more than offset by tax cuts; Italy and Spain, ...
... Ireland, Denmark, Sweden and Belgium, while most of the action in Germany came from cuts in current spending. In the Netherlands the effect of reduced government expenditure was more than offset by tax cuts; Italy and Spain, ...
NBER WORKING PAPER SERIES PRODUCTIVITY, EXTERNAL BALANCE AND
... the international relative price of domestic tradables (i.e. it should worsen the country’s terms of trade) and raise the relative price of domestic nontradables — as predicted by to the Harrod-Balassa-Samuelson (henceforth HBS) hypothesis. A host of theoretical and quantitative models built by acad ...
... the international relative price of domestic tradables (i.e. it should worsen the country’s terms of trade) and raise the relative price of domestic nontradables — as predicted by to the Harrod-Balassa-Samuelson (henceforth HBS) hypothesis. A host of theoretical and quantitative models built by acad ...