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Permanent and transitory policy shocks in an empirical macro model with asymmetric information
Kozicki, Sharon; Tinsley, P. A. - Center for Financial Studies - 2003
Despite a large literature documenting that the efficacy of monetary policy depends on how inflation expectations are anchored, many monetary policy models assume: (1) the inflation target of monetary policy is constant; and, (2) the inflation target is known by all economic agents. This paper...
Persistent link: https://www.econbiz.de/10010986417
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Permanent and Transitory Policy Shocks in an Empirical Macro Model with Asymmetric Information
Kozicki, Sharon; Tinsley, P.A. - Center for Financial Studies - 2003
Despite a large literature documenting that the efficacy of monetary policy depends on how inflation expectations are anchored, many monetary policy models assume: (1) the inflation target of monetary policy is constant; and, (2) the inflation target is known by all economic agents. This paper...
Persistent link: https://www.econbiz.de/10005138846
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Price Stability, Inflation Convergence and Diversity in EMU: Does One Size Fit All?
Weber, Axel A.; Beck, Günter W. - Center for Financial Studies - 2005
major EMU countries before and after the introduction of the euro. For both periods, we find strong evidence in favor of … mean reversion (ß-convergence) in inflation rates. However, half-lives to convergence are considerable and seem to have … increased after 1999. The results indicate that the convergence process is nonlinear in the sense that its speed becomes smaller …
Persistent link: https://www.econbiz.de/10005022451
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Money in monetary policy design under uncertainty: A formal characterization of ECB-style cross-checking
Beck, Günter W.; Wieland, Volker - Center for Financial Studies - 2006
The European Central Bank has assigned a special role to money in its two pillar strategy and has received much criticism for this decision. The case against including money in the central banks interest rate rule is based on a standard model of the monetary transmission process that underlies...
Persistent link: https://www.econbiz.de/10010986372
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Central bank misperceptions and the role of money in interest rate rules
Beck, Günter W.; Wieland, Volker - Center for Financial Studies - 2008
Research with Keynesian-style models has emphasized the importance of the output gap for policies aimed at controlling inflation while declaring monetary aggregates largely irrelevant. Critics, however, have argued that these models need to be modified to account for observed money growth and...
Persistent link: https://www.econbiz.de/10010986449
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Money in monetary policy design under uncertainty: The two-pillar Phillips curve versus ECB-style cross-checking
Beck, Günter W.; Wieland, Volker - Center for Financial Studies - 2006
The European Central Bank has assigned a special role to money in its two pillar strategy and has received much criticism for this decision. In this paper, we explore possible justifications. The case against including money in the central banks interest rate rule is based on a standard model of...
Persistent link: https://www.econbiz.de/10010986472
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Money in monetary policy design: Monetary cross-checking in the New-Keynesian Model
Beck, Guenter W.; Wieland, Volker - Center for Financial Studies - 2009
In the New-Keynesian model, optimal interest rate policy under uncertainty is formulated without reference to monetary aggregates as long as certain standard assumptions on the distributions of unobservables are satisfied. The model has been criticized for failing to explain common trends in...
Persistent link: https://www.econbiz.de/10010958545
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Monetary policy, long real yields and the financial crisis
Moretti, Laura - Center for Financial Studies - 2014
This paper investigates the role of monetary policy in the collapse in the long-term real interest rates in the decade before the onset of the financial crisis using a sample of five advanced economies (United States, United Kingdom, the euro area, Sweden and Canada). The results from an...
Persistent link: https://www.econbiz.de/10010958555
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Equal size, equal role? Interest rate interdependence between the Euro area and the United States
Ehrmann, Michael; Fratzscher, Marcel - Center for Financial Studies - 2003
United States and the euro area have changed with the advent of EMU. Using real-time data, it addresses this issue from the … increased strongly around EMU. Although spillover effects from the United States to the euro area remain stronger than in the … EMU. Second, beyond these general linkages, the paper finds that certain macroeconomic news about the US economy have a …
Persistent link: https://www.econbiz.de/10010958641
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Monetary policy and TIPS yields before the crisis
Gerlach, Stefan; Moretti, Laura - Center for Financial Studies - 2011
We make three points. First, the decade before the financial crisis in 2007 was characterized by a collapse in the yield on TIPS. Second, estimated VARs for the federal funds rate and the TIPS yield show that while monetary policy shocks had negligible effects on the TIPS yield, shocks to the...
Persistent link: https://www.econbiz.de/10010958654