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This overview paper examines two main issues. The first is why the exchange rate matters, especially for emerging market economies. The second is under what circumstances and how countries have dealt with the challenges posed by the exchange rate in recent years in the context of inflation...
Persistent link: https://www.econbiz.de/10005063357
In this paper we explore the role that exchange rate interventions may play in determining inflation expectations in Chile. To that end, we consider a set of nine deciles of inflation expectations coming from the survey of professional forecasters carried out by the Central Bank of Chile. We...
Persistent link: https://www.econbiz.de/10010849792
Well anchored inflation expectations are considered to be a reflection of credible monetary policy. In the past, anchoring has been assessed using either long-run inflation surveys or break-even inflation rates on financial assets with long maturities. But neither of these is ideal. Here we...
Persistent link: https://www.econbiz.de/10010929857
This paper attempts to conceptualize the debate regarding the role of asset prices and perceived financial imbalances in the formation of monetary policy from the perspective of theoretically optimal policy responses. While much of the disagreement can be reconciled within the framework of...
Persistent link: https://www.econbiz.de/10005187766
-based filters. We identify the financial cycle with the medium-term component in the joint fluctuations of credit and property …
Persistent link: https://www.econbiz.de/10010849799
This paper proposes a model of how agents adjust their asset holdings in response to losses in general equilibrium. By emphasising the relation between deflation and financial distress, we capture some original features of the early debt-deflation literature, such as distress selling,...
Persistent link: https://www.econbiz.de/10005063361
ever before as measured by importance of credit in the economy. I term this long-run evolution "The Great Leveraging" and …
Persistent link: https://www.econbiz.de/10010598582
several emerging market economies are said to have helped fuel the credit booms and risk-taking in the major advanced deficit … the build-up of unsustainable credit and asset price booms ("financial imbalances"). Credit creation, a defining feature …
Persistent link: https://www.econbiz.de/10009024810
over to Asia mainly through low domestic bond yields and rapid growth of domestic bank credit. Financial integration does …
Persistent link: https://www.econbiz.de/10011106746
Central banks of major advanced economies have maintained a very accommodative monetary policy stance in the last few years. However, concerns have surfaced that the transmission of low policy rates to lending rates has been weaker than in the past. Has the transmission of policy rates to...
Persistent link: https://www.econbiz.de/10011106749