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The Origins of Foreign Exchange Policy: The National Bank of Belgium and the Quest for Monetary Independence in the 1850s
Ugolini, Stefano - Norges Bank - 2010
Can the central bank of a small open economy be mandated with the maintenance of both fixed exchange rates and monetary independence, and still succeed in the long term? Looking at a pioneering experiment put in place by the National Bank of Belgium, this article shows how foreign exchange...
Persistent link: https://www.econbiz.de/10008739739
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Managing uncertainty through robust-satisficing monetary policy
Akram, Q. Farooq; Ben-Haim, Yakov; Eitrheim, Øyvind - Norges Bank - 2006
We employ information-gap decision theory to derive a robust monetary policy response to Knightian parameter uncertainty. This approach provides a quantitative answer to the question: For a specified policy, how much can our models and data err or vary, without rendering the outcome of that...
Persistent link: https://www.econbiz.de/10005481435
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How does monetary policy respond to exchange rate movements? New international evidence
Bjørnland, Hilde C.; Halvorsen, Jørn I. - Norges Bank - 2008
inflation). Doing so, we find strong interaction between monetary policy and exchange rate variation. Our results suggest more …
Persistent link: https://www.econbiz.de/10005481446
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Monetary policy and exchange rate overshooting: Dornbusch was right after all
Bjørnland, Hilde C. - Norges Bank - 2009
Dornbusch's exchange rate overshooting hypothesis is a central building block in international macroeconomics. Yet, empirical studies of monetary policy have typically found exchange rate effects that are inconsistent with overshooting. This puzzling result has been viewed by some researchers as...
Persistent link: https://www.econbiz.de/10004997867
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The role of house prices in the monetary policy transmission mechanism in the U.S.
Bjørnland, Hilde C.; Jacobsen, Dag Henning - Norges Bank - 2008
enhances the negative response in output and consumer price inflation that has traditionally been found in the conventional …
Persistent link: https://www.econbiz.de/10005063090
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Monetary policy and exchange rate interactions in a small open economy
Bjørnland, Hilde C. - Norges Bank - 2005
movements in the inflation-targeting period. Previous studies of the effects of monetary policy in open economies have typically … inflation fall gradually as expected; thereby also ruling out any price puzzle that has commonly been found in the literature …
Persistent link: https://www.econbiz.de/10005063097
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Monetary policy and the illusionary exchange rate puzzle
Bjørnland, Hilde C. - Norges Bank - 2005
Dornbusch’s exchange rate overshooting hypothesis is a central building block in international macroeconomics. Yet, empirical studies of monetary policy have typically found exchange rate effects that are inconsistent with overshooting. This puzzling result has developed into a “styled...
Persistent link: https://www.econbiz.de/10005063102
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The role of house prices in the monetary policy transmission mechanism in small open economies
Bjørnland, Hilde C.; Jacobsen, Dag Henning - Norges Bank - 2009
prices seem to enhance the negative response in output and consumer price inflation that has traditionally been found in the …
Persistent link: https://www.econbiz.de/10004992362
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What horizon for targeting inflation?
Q. Farooq Akram. - Norges Bank - 2008
We investigate optimal horizons for targeting inflation in response to different shocks and their properties under … alternative preferences of an inflation-targeting central bank. Our analysis is based on a well specified macroeconometric model … inflation and output. Successful inflation targeting in such cases may require a complex interest rate response. The optimal …
Persistent link: https://www.econbiz.de/10005292516
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Price-level determinacy, lower bounds on the nominal interest rate, and liquidity traps
Alstadheim, Ragna; Henderson, Dale - Norges Bank - 2006
We consider standard monetary-policy rules with inflation-rate targets and interest-rate or money-growth instruments …-target equilibria (BTE) with inflation always below target and constant asymptotically approaching or eventually reaching a below … rate above a lower bound. We construct monetary-policy rules that preclude BTE, some which are monotonic in inflation but …
Persistent link: https://www.econbiz.de/10005063096