Taylor Rules, McCallum Rules and the Term Structure of Interest Rates
... that a factor model of the term structure that also imposes no-arbitrage conditions, can provide a better empirical model of the term structure than a model based on unobserved factors or latent variables alone. Estrella and Mishkin (1997), Evans and Marshall (1998) and (2001), also provide evidence ...
... that a factor model of the term structure that also imposes no-arbitrage conditions, can provide a better empirical model of the term structure than a model based on unobserved factors or latent variables alone. Estrella and Mishkin (1997), Evans and Marshall (1998) and (2001), also provide evidence ...
Measuring the Natural Rate of Interest Redux
... estimates of the medium- or longer-term trends using the Hodrick-Prescott filter, the bandpass filter, and an unobserved components stochastic volatility model (Stock and Watson 2007). The five-year moving average of real interest rates is also shown for comparison. Although such univariate time ser ...
... estimates of the medium- or longer-term trends using the Hodrick-Prescott filter, the bandpass filter, and an unobserved components stochastic volatility model (Stock and Watson 2007). The five-year moving average of real interest rates is also shown for comparison. Although such univariate time ser ...
Risk of deflation?
... Overall annual HICP inflation in the euro area has declined significantly in recent years, from 3.0% in November 2011 to 0.5% in May 2014.1 In an environment of subdued economic growth and weak money and credit creation, this decline has triggered discussions about the extent to which there is a ris ...
... Overall annual HICP inflation in the euro area has declined significantly in recent years, from 3.0% in November 2011 to 0.5% in May 2014.1 In an environment of subdued economic growth and weak money and credit creation, this decline has triggered discussions about the extent to which there is a ris ...
Downlaod File
... general level of prices for goods and services is rising, and, subsequently, purchasing power is falling." As inflation rises, every dollar will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year. Most countries' central bank ...
... general level of prices for goods and services is rising, and, subsequently, purchasing power is falling." As inflation rises, every dollar will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year. Most countries' central bank ...
Brazilian Economic Performance since the Emergence
... quently, the Brazilian public sector has became creditor in foreign currency since 2006. Yet, despite these interventions in the spot market, the Brazilian currency continued to appreciate until the global financial crisis due to the key role of the foreign exchange derivatives market in the exchang ...
... quently, the Brazilian public sector has became creditor in foreign currency since 2006. Yet, despite these interventions in the spot market, the Brazilian currency continued to appreciate until the global financial crisis due to the key role of the foreign exchange derivatives market in the exchang ...
(∆P/P) - (∆P/P) - University of Ottawa
... As shown in Figure 4 this does not, however, leave the New Consensus economists off the hook. Even in this case, there is a problem with the New Consensus analytics in dealing with the traditional argument that the positive wealth effects resulting from the falling prices will eventually move the AD ...
... As shown in Figure 4 this does not, however, leave the New Consensus economists off the hook. Even in this case, there is a problem with the New Consensus analytics in dealing with the traditional argument that the positive wealth effects resulting from the falling prices will eventually move the AD ...
G97/2 The Inflation-Output Trade-Off: Is The Phillips Curve
... I am thankful to John Lapp, John Seater, Douglas Pearce and Glenn Rudebusch, for their valuable comments on early drafts. I also thank Scott ...
... I am thankful to John Lapp, John Seater, Douglas Pearce and Glenn Rudebusch, for their valuable comments on early drafts. I also thank Scott ...
The Effect of Macroeconomic Instability on Economic Growth in Iran
... form human interaction with one another.” Some institutional economists have discussed on studying the role of democratic institutions in macroeconomic instability and all of them have emphasized that democratic institutions can reduce instability. In other words, macroeconomic instability in democr ...
... form human interaction with one another.” Some institutional economists have discussed on studying the role of democratic institutions in macroeconomic instability and all of them have emphasized that democratic institutions can reduce instability. In other words, macroeconomic instability in democr ...
Chapter 6-The Business Cycle
... Periods of deflation have been rather rare in most countries of the world. During the great depression of the 1930's, prices did go down. The consequences were quite devastating: many companies went out of business for lack of revenues. DEMAND-PULL INFLATION One of the possible explanations of infl ...
... Periods of deflation have been rather rare in most countries of the world. During the great depression of the 1930's, prices did go down. The consequences were quite devastating: many companies went out of business for lack of revenues. DEMAND-PULL INFLATION One of the possible explanations of infl ...
not in the textbook? - Lancaster University
... the amount by which previously unemployed labour and unused capital are remunerated for raising output/income. That output/income is direcet in part to taxation (T = tG; 0 < t < 1), in part to saving (S = sG; 0 < s < 1) leaving the remainder (G{1 – s – t}) as new consumption expenditure, which deliv ...
... the amount by which previously unemployed labour and unused capital are remunerated for raising output/income. That output/income is direcet in part to taxation (T = tG; 0 < t < 1), in part to saving (S = sG; 0 < s < 1) leaving the remainder (G{1 – s – t}) as new consumption expenditure, which deliv ...
duty free quota free market access
... least 97 per cent of products originating from LDCs, defined at the tariff line level, by 2008 or no later than the start of the implementation period. In addition, these Members shall take steps to progressively achieve compliance with the obligations set out above, taking into account the impact o ...
... least 97 per cent of products originating from LDCs, defined at the tariff line level, by 2008 or no later than the start of the implementation period. In addition, these Members shall take steps to progressively achieve compliance with the obligations set out above, taking into account the impact o ...
What determines macroeconomic volatility? A cross
... considerable policy implications. Thirdly, assuming that agents in the economy are not risk neutral, volatility in growth rates produces welfare effects and therefore is an important determinant of real welfare in an economy, see Spiliopoulos, L. (2004). Apart from a lack of econometric studies into ...
... considerable policy implications. Thirdly, assuming that agents in the economy are not risk neutral, volatility in growth rates produces welfare effects and therefore is an important determinant of real welfare in an economy, see Spiliopoulos, L. (2004). Apart from a lack of econometric studies into ...
This PDF is a selection from a published volume from... Research Volume Title: International Dimensions of Monetary Policy
... likely to be more important to the central bank. To preview, I find that if globalization really does proceed that far, central banks’ ability to achieve their objectives may be substantially constrained. I also find that the constraint is asymmetric: the circulation of multiple currencies limits a ...
... likely to be more important to the central bank. To preview, I find that if globalization really does proceed that far, central banks’ ability to achieve their objectives may be substantially constrained. I also find that the constraint is asymmetric: the circulation of multiple currencies limits a ...
STATISTICS BRIEF Creation of the euro area
... to OECD Member countries (see table above). Furthermore, such data are indispensable for financial market participants and increasingly for social partners due to the need to take developments elsewhere into account during wage negotiations. This demand for statistical information goes therefore muc ...
... to OECD Member countries (see table above). Furthermore, such data are indispensable for financial market participants and increasingly for social partners due to the need to take developments elsewhere into account during wage negotiations. This demand for statistical information goes therefore muc ...
Optimal Monetary Policy in a Currency Area
... prices. Monopolistic competition rationalizes the existence of price stickiness. A two-region model represents the minimum requirement in order to study the important role of relative prices. When different regions experience asymmetric shocks, movements in the terms of trade are important in explai ...
... prices. Monopolistic competition rationalizes the existence of price stickiness. A two-region model represents the minimum requirement in order to study the important role of relative prices. When different regions experience asymmetric shocks, movements in the terms of trade are important in explai ...
Inflation Targeting and The Need for a New Central Banking
... However, inflation rates were on a downward trend in all over the world well before the advent of the IT regimes and this trend carried on in the 1990s, which was also acknowledged by some IT proponents. To be more concrete, according to the World Bank statistics, average global inflation rate was ...
... However, inflation rates were on a downward trend in all over the world well before the advent of the IT regimes and this trend carried on in the 1990s, which was also acknowledged by some IT proponents. To be more concrete, according to the World Bank statistics, average global inflation rate was ...
Chapter 32 - McGraw Hill Higher Education - McGraw
... while borrowers are better off, from inflation. • If inflation is predictable, then this redistributive effect need not happen. – Even if inflation is high, savers will not lose out as long as banks offer nominal interest rates above inflation. ...
... while borrowers are better off, from inflation. • If inflation is predictable, then this redistributive effect need not happen. – Even if inflation is high, savers will not lose out as long as banks offer nominal interest rates above inflation. ...
PRICES, THE CPI, AND INFLATION
... • Inflation that is accurately anticipated need not redistribute wealth between borrowers and lenders. – The nominal interest rate will include an adequate inflation premium, above the real interest rate. ...
... • Inflation that is accurately anticipated need not redistribute wealth between borrowers and lenders. – The nominal interest rate will include an adequate inflation premium, above the real interest rate. ...
“Banking, Finance, and Money: a Socio
... are quickly incorporated in expectations and thus in market behavior. For example, when the central bank raises nominal interest rates to fight inflation, if there are consistent expectations, markets quickly lower their inflation forecasts. This makes the real interest rate (nominal rate less expec ...
... are quickly incorporated in expectations and thus in market behavior. For example, when the central bank raises nominal interest rates to fight inflation, if there are consistent expectations, markets quickly lower their inflation forecasts. This makes the real interest rate (nominal rate less expec ...
Non-Stationarity and Instability in Small Open
... absorber, which agents use to optimally smooth their consumption. The means for doing so are borrowing and lending in international financial markets. It almost goes without saying that international macroeconomists have had a long-standing interest in analyzing the behavior of the current account. ...
... absorber, which agents use to optimally smooth their consumption. The means for doing so are borrowing and lending in international financial markets. It almost goes without saying that international macroeconomists have had a long-standing interest in analyzing the behavior of the current account. ...
Chapter 7
... unemployment rate that is estimated to prevail in the long-run macroeconomic equilibrium Should not reflect cyclical unemployment When seasonally adjusted, the natural rate should include only frictional and structural unemployment. ...
... unemployment rate that is estimated to prevail in the long-run macroeconomic equilibrium Should not reflect cyclical unemployment When seasonally adjusted, the natural rate should include only frictional and structural unemployment. ...
frenchdavis2001financialcrisis_en.pdf
... stock of external liabilities.4 All these macroeconomic variables experienced some overshooting.5 Adjustment was frequently anchored to one dominant balance, which generated imbalances in other macroeconomic variables, as in a falling inflation rate associated with real exchange rate appreciation a ...
... stock of external liabilities.4 All these macroeconomic variables experienced some overshooting.5 Adjustment was frequently anchored to one dominant balance, which generated imbalances in other macroeconomic variables, as in a falling inflation rate associated with real exchange rate appreciation a ...
Chapter 14: Dynamic AD-AS
... As inflation falls, (νover > 0)(shifts is ν = 0) inflation DAS upward; but DAS doesfall, not expectations inflation rises, return to its initial DAS moves central bank position due to downward, responds by higher inflation output rises. raising real expectations. This process interest rate, continue ...
... As inflation falls, (νover > 0)(shifts is ν = 0) inflation DAS upward; but DAS doesfall, not expectations inflation rises, return to its initial DAS moves central bank position due to downward, responds by higher inflation output rises. raising real expectations. This process interest rate, continue ...
Aggregate demand
... Permanent Shifts in Monetary and Fiscal Policy Macroeconomic Policies and the Current Account Gradual Trade Flow Adjustment and Current Account Dynamics Summary ...
... Permanent Shifts in Monetary and Fiscal Policy Macroeconomic Policies and the Current Account Gradual Trade Flow Adjustment and Current Account Dynamics Summary ...
Special Focus: Mastering Economic Thinking Skills
... charged with the task of deciding which topics in microeconomics and macroeconomics to assign to my very capable writers. From my years of experience on the AP Economics Development Committee, I knew that a few topics in each area were new and perplexing to both students and teachers. From my years ...
... charged with the task of deciding which topics in microeconomics and macroeconomics to assign to my very capable writers. From my years of experience on the AP Economics Development Committee, I knew that a few topics in each area were new and perplexing to both students and teachers. From my years ...