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opposed to the case in which the interest rate reacts to area-wide variables only. Our results suggest that asymmetries within …
Persistent link: https://www.econbiz.de/10005113600
An important concern for the European Central Bank (ECB), and all central banks alike, is the necessity of making decisions in real time under conditions of great uncertainty about the underlying state of the economy. We address this concern by estimating on real-time data a New Keynesian model...
Persistent link: https://www.econbiz.de/10008917790
This paper investigates possible non-linearities in the response of bank lending to monetary policy shocks in the euro area. The credit market is modelled over the period 1985-2005 by means of an Asymmetric Vector Error Correction Model (AVECM) involving four endogenous variables (loans to the...
Persistent link: https://www.econbiz.de/10005111568
This paper examines the velocity and asymmetry in the response of bank interest rates to monetary policy shocks. Using an Asymmetric Vector Error Correction Model (AVECM), it analyses the pass-through of changes in the money market rates to retail bank interest rates in Italy in the period...
Persistent link: https://www.econbiz.de/10005113657
area countries. Because of these asymmetries, an area-wide modelling approach is arguably less reliable, from a strictly … detectable) asymmetries of any practical relevance when it comes to supporting monetary policy decision-making? To answer this …
Persistent link: https://www.econbiz.de/10005111550
This paper analyzes the operation of the Eurosystem�s public and private assets purchases programmes for monetary policy purposes, quantifying the potential effect on the Italian economy. First we give an exhaustive account of the main transmission channels by which the purchases can be...
Persistent link: https://www.econbiz.de/10011277927
This publication collects the papers presented at the workshop entitled "The sovereign debt crisis and the euro area", held at the Bank of Italy in Rome on 15 February 2013. In recent years the Economic Research and International Relations Area of the Bank of Italy has conducted several analyses...
Persistent link: https://www.econbiz.de/10011277929
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
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
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