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Unconventional Monetary Policy in Theory and in Practice

Cecioni, Martina; Ferrero, Giuseppe; Secchi, Alessandro - Banca d'Italia - 2011

In this paper, after discussing the theoretical underpinnings of unconventional monetary policy measures, we review the existing empirical evidence on their effectiveness, focusing on those adopted by the European Central Bank and by the Federal Reserve. These measures operate in two ways:...

Persistent link: https://www.econbiz.de/10009320180

Is deflation good or bad? Just mind the inflation gap

Casiraghi, Marco; Ferrero, Giuseppe - Banca d'Italia - 2015

We explain why the macroeconomic effects of shocks to inflation of the same size, but opposite sign, are not necessarily symmetric. All in all, the costs of deflation and disinflation tend to exceed those of inflation due to the presence of constraints in the economy, namely the zero lower bound...

Persistent link: https://www.econbiz.de/10011265438

The Announcement of Monetary Policy Intentions

Ferrero, Giuseppe; Secchi, Alessandro - Banca d'Italia - 2009

Whether a central bank should share with the public its views about the future evolution of short term interest rates is an unresolved issue. Disclosing this information might allow a more precise control of market expectations and a more effective achievement of the ultimate goals of the...

Persistent link: https://www.econbiz.de/10008459742

Short-term interest rate futures as monetary policy forecasts

Ferrero, Giuseppe; Nobili, Andrea - Banca d'Italia - 2008

The prices of futures contracts on short-term interest rates are commonly used by central banks to gauge market expectations concerning monetary policy decisions. Excess returns - the difference between futures rates and the realized rates - are positive, on average, and statistically...

Persistent link: https://www.econbiz.de/10005609342

Central banks' macroeconomic projections and learning

Ferrero, Giuseppe; Secchi, Alessandro - Banca d'Italia - 2010

We study the impact of the publication of central banksï¿½ macroeconomic projections on the dynamic properties of an economy where (i) private agents have incomplete information and form their expectations using recursive learning algorithms; (ii) the short-term nominal interest rate is set...

Persistent link: https://www.econbiz.de/10008764925

Informational Effects of Monetary Policy

Ferrero, Giuseppe; Miccoli, Marcello; Santoro, Sergio - Banca d'Italia - 2014

We analyse a simplified New-Keynesian model with an unobserved aggregate cost-push shock in which firms and the central bank have different information about the shock. We consider a linear policy rule where a pure inflation targeting central bank decides how much to react to the shock given its...

Persistent link: https://www.econbiz.de/10011099675

Determinants of TARGET2 imbalances

Cecioni, Martina; Ferrero, Giuseppe - Banca d'Italia - 2012

then study BoP developments in Greece, Portugal, Italy and Spain, investigating which of the following explanations …2 liabilities is related to the current account deficit in Greece, there is no evidence of this in Italy, Spain and …; deposit runs are apparent only in Greece. In Italy, the reduction of capital inflows consisted entirely in a decrease in the …

Persistent link: https://www.econbiz.de/10011100341