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Economic Policy Uncertainty and Inflation Expectations.

Istrefi, K.; Piloiu, A. - Banque de France - 2014

Theory and evidence suggest that in an environment of well-anchored expectations, temporary economic news or shocks should not affect agents' expectations of inflation in the long term. Our estimated structural VARs show that both long- and short-term inflation expectations are sensitive to...

Persistent link: https://www.econbiz.de/10010937890

Rational Inattention to News: The Perils of Forward Guidance.

Gaballo, G. - Banque de France - 2013

This paper studies the social value of information about the future when agents are rationally inattentive. In a stylized OLG model of inflation the central bank (CB) can set money supply in response to the current price. The CB has perfect foresight about the future T shocks and releases this...

Persistent link: https://www.econbiz.de/10010815968

Reserve Requirements for Price and Financial Stability - When Are They Effective?

Glocker, C.; Towbin, P. - Banque de France - 2012

Reserve requirements are a prominent policy instrument in many emerging countries. The present study investigates the circumstances under which reserve requirements are an appropriate policy tool for price or financial stability. We consider a small open economy model with sticky prices,...

Persistent link: https://www.econbiz.de/10009651278

Macroprudential framework:key questions applied to the French case.

Bennani, T.; Després, M.; Dujardin, M.; Duprey, T.; … - Banque de France - 2014

This paper presents the main features of macroprudential policy with a focus on the French case. We first recall the ultimate objective of this policy, which is to prevent and to mitigate systemic risk, i.e. the risk of “widespread disruptions to the provision of financial services that have...

Persistent link: https://www.econbiz.de/10010815921

Macro-prudential policy and the conduct of monetary policy.

Beau, D.; Clerc, L.; Mojon, B. - Banque de France - 2011

In this paper, we analyse the interactions between monetary and macro-prudential policies and the circumstances under which such interactions call for their coordinated implementation. We start with a review of the interdependencies between monetary and macro-prudential policies. Then, we use a...

Persistent link: https://www.econbiz.de/10010815922

Macro-Prudential Policy and the Conduct of Monetary Policy.

Beau, D.; Clerc, L.; Mojon, B. - Banque de France - 2012

Persistent link: https://www.econbiz.de/10010816001

Financial Market Liquidity and the Lender of Last Resort.

Ewerhart, C.; Valla, N. - Banque de France - 2007

It has been argued in the literature that emergency liquidity injections should be conducted preferably in the form of … open market operations. As we show in the present paper, this is not necessarily the case when liquidity may be …, targeted liquidity assistance may become strictly superior. The analysis might have a bearing on recent developments in the …

Persistent link: https://www.econbiz.de/10004998822

On policy interactions among nations: when do cooperation and commitment matter ?

Kempf, H.; Von Thadden, L. - Banque de France - 2008

This paper offers a framework to study commitment and cooperation issues in games with multiple policymakers. To reconcile some puzzles in the recent literature on the nature of policy interactions among nations, we prove that games characterized by different commitment and cooperation schemes...

Persistent link: https://www.econbiz.de/10008528498

Debt enforcement and the return on money

Rojas-Breu, M. - Banque de France - 2011

The rate-of-return-dominance puzzle asks why low-return assets, like fiat money, are used in actual economies given that risk-free higher-return assets are available. As long as this question remains unresolved, most conclusions from monetary models which arbitrarily restrict the marketability...

Persistent link: https://www.econbiz.de/10009320820

Currency Union with and without Banking Union.

Bignon, V.; Breton, R.; Rojas Breu, M. - Banque de France - 2013

This paper analyzes a two-country model of currency, banks and endogenous default to study whether impediments to credit market integration across jurisdictions impact the desirability of a currency union. We show that when those impediments induce a higher cost for banks to manage cross-border...

Persistent link: https://www.econbiz.de/10010816016