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Monetary policy and asset prices: To respond or not?
Akram, Q. Farook; Bårdsen, Gunnar; Eitrheim, Øyvind - Norges Bank - 2005
We investigate whether there is a case for asset prices in interest rates rules within a small econometric model of the Norwegian economy, modeling the interdependence of the real economy, credit and three classes of assets prices: housing prices, equity prices and the nominal exchange rate. We...
Persistent link: https://www.econbiz.de/10005292507
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Flexible inflation targeting and financial stability: Is it enough to stabilise inflation and output?
Akram, Q. Farooq; Eitrheim, Øyvind - Norges Bank - 2006
We investigate empirically whether a central bank can promote financial stability by stabilising inflation and output, and whether additional stabilisation of asset prices and credit growth would enhance financial stability, in particular. We employ an econometric model of the Norwegian economy...
Persistent link: https://www.econbiz.de/10005292512
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Pursuing financial stability under an inflation-targeting regime
Akram, Q. Farooq; Bårdsen, Gunnar; Lindquist, Kjersti-Gro - Norges Bank - 2006
that potential gains from an activist or precautionary approach to promoting financial stability are highly shock dependent … for inflation. The preferred target horizon depends on the financial stability indicator and the shock. An extension of …
Persistent link: https://www.econbiz.de/10005292513
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What horizon for targeting inflation?
Q. Farooq Akram. - Norges Bank - 2008
optimal horizon is highly shock-specific, precluding general conclusions for demand and supply shocks. An extension of the … horizon with concern for output and/or interest rate fluctuations beyond some shock-specific level proves counterproductive …. The size of a given shock does not affect the horizon unless the central bank cares about interest rate volatility, while …
Persistent link: https://www.econbiz.de/10005292516
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Nowcasting GDP in real-time: A density combination approach
Aastveit, Knut Are; Gerdrup, Karsten R.; Jore, Anne Sofie; … - Norges Bank - 2011
In this paper we use U.S. real-time vintage data and produce combined density nowcasts for quarterly GDP growth from a system of three commonly used model classes. The density nowcasts are combined in two steps. First, a wide selection of individual models within each model class are combined...
Persistent link: https://www.econbiz.de/10009366339
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House prices, credit and the effect of monetary policy in Norway: Evidence from Structural VAR Models
Robstad, Ørjan - Norges Bank - 2014
Bayesian structural VAR models. I find that the effect of a monetary policy shock on house prices is large, while the effect on …
Persistent link: https://www.econbiz.de/10010835411
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The zero lower bound on the interest rate and a Neo-Classical Phillips curve
Alstadheim, Ragna - Norges Bank - 2010
With sticky prices, optimizing agents and money in the utility function, I derive the exact analytical solution for optimal monetary policy given a zero lower bound (ZLB) on the interest rate. The Phillips curve is Neo-Classical, and the ZLB is then not a constraint on optimal policy. Optimal...
Persistent link: https://www.econbiz.de/10008457309
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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
considerably. In particular, house prices react immediately and strongly to a monetary policy shock. Furthermore, the fall in house …
Persistent link: https://www.econbiz.de/10004992362
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Managing uncertainty through robust-satisficing monetary policy
Akram, Q. Farooq; Ben-Haim, Yakov; Eitrheim, Øyvind - Norges Bank - 2006
empirically the robust monetary policy response to a supply shock with an uncertain degree of persistence. …
Persistent link: https://www.econbiz.de/10005481435
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Identifying the interdependence between US monetary policy and the stock market
Bjørnland, Hilde C.; Leitemo, Kai - Norges Bank - 2008
-run and long-run restrictions that maintains the qualitative properties of a monetary policy shock found in the established … stock prices immediately fall by 7-9 percent due to a monetary policy shock that raises the federal funds rate by 100 basis … points. A stock price shock increasing real stock prices by one percent leads to an increase in the interest rate of close to …
Persistent link: https://www.econbiz.de/10005481436