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Inflation and core money growth in the euro area
Neumann, Manfred J. M.; Greiber, Claus - Deutsche Bundesbank - 2004
This paper studies the importance of money for inflation in the euro area. An inflation equation is derived from a … small model that combines the supply and demand for money with a Phillips curve and the assumption that inflation … expectations develop adaptively. The model's solution attributes an impact on inflation not to actual money growth but to its core …
Persistent link: https://www.econbiz.de/10005083091
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Central Bank Intervention and Exchange Rate Expectations: Evidence from the Daily DM/US-Dollar Exchange Rate
Reitz, Stefan - Deutsche Bundesbank - 2002
In this paper we propose a generalisation of the noise trader transmission mechanism to examine the impact of central bank intervention on exchange rates. Within a heterogeneous expectations exchange rate model intervention operations are supposed to provide support to either chartist or...
Persistent link: https://www.econbiz.de/10005059033
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Real-Time Estimation of the Output Gap in Japan and its Usefulness for Inflation Forecasting and Policymaking
Kamada, Koichiro - Deutsche Bundesbank - 2004
and disadvantages of the various output gap measures. First, I examine the usefulness of the output gap for inflation …
Persistent link: https://www.econbiz.de/10005083207
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Optimal monetary policy in a small open economy with financial frictions
Merola, Rossana - Deutsche Bundesbank - 2010
inflation stability and whether, in the presence of financial frictions, the optimal outcome can be realized or approached more … inflation targeting cum exchange rate stabilization and a price-level targeting are more suitable rules in minimizing …
Persistent link: https://www.econbiz.de/10008583542
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Exchange rate dynamics, expectations, and monetary policy
Chen, Qianying - Deutsche Bundesbank - 2011
This paper re-investigates the implications of monetary policy rules on changes in exchange rate, in a risk-adjusted, uncovered interest parity model with unrestricted parameters, emphasizing the importance of modeling market expectations of monetary policy. I use consensus forecasts as a proxy...
Persistent link: https://www.econbiz.de/10009283654
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Financial globalization and monetary policy
Devereux, Michael B.; Sutherland, Alan - Deutsche Bundesbank - 2008
Recent data show substantial increases in the size of gross external asset and liability positions. The implications of these developments for optimal conduct of monetary policy are analyzed in a standard open economy model which is augmented to allow for endogenous portfolio choice. The model...
Persistent link: https://www.econbiz.de/10005083302
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Transmission of nominal exchange rate changes to export prices and trade flows and implications for exchange rate policy
Hoffmann, Mathias; Holtemöller, Oliver - Deutsche Bundesbank - 2009
We discuss how the welfare ranking of fixed and flexible exchange rate regimes in a New Open Economy Macroeconomics model depends on the interplay between the degree of exchange rate pass-through and the elasticity of substitution between home and foreign goods. We identify combinations of these...
Persistent link: https://www.econbiz.de/10005059025
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Price convergence in the EMU? Evidence from micro data
Fischer, Christoph - Deutsche Bundesbank - 2009
The establishment of European monetary union (EMU) was widely expected to cause price convergence among member states. In an investigation of this claim, the present study avoids problems of comparability and representativeness by using an extremely detailed and comprehensive scanner database on...
Persistent link: https://www.econbiz.de/10005083152
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An assessment of the trends in international price competitiveness among EMU countries
Fischer, Christoph - Deutsche Bundesbank - 2007
Inflation differentials within European Monetary Union (EMU) are increasingly seen as exerting adverse effects on the … euro-area economies, in particular to those with relatively high inflation rates. Using three simple measures of …
Persistent link: https://www.econbiz.de/10005083196
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The timing and magnitude of exchange rate overshooting
Hoffmann, Mathias; Søndergaard, Jens; Westelius, Niklas J. - Deutsche Bundesbank - 2007
Empirical evidence suggests that a monetary shock induces the exchange rate to overshoot its long-run level. The estimated magnitude and timing of the overshooting, however, varies across studies. This paper generates delayed overshooting in a new Keynesian model of a small open economy by...
Persistent link: https://www.econbiz.de/10005083321