Similar Search Results

Suvanto, Antti; Hukkinen, Juhana - Suomen Pankki - 2004

zero. The paper shows that declining nominal prices were a rather common phenomenon during this period of low or no … inflation. The declining prices cannot, however, be explained by lack of demand or any generalized deflationary tendencies …. Hence, the downward rigidity of nominal prices has not prevented relative price adjustments under price stability. The paper …

Persistent link: https://www.econbiz.de/10005648879

The Exchange Rate and Monetary Conditions in the Euro Area

Mayes, David G.; Viren, Matti - Suomen Pankki - 1998

Using information from a variety of sources, including our own estimates from quarterly data for each of the countries over the period 1972–1997, this paper suggests that the exchange rate will play an important role in the transmission of the impact of monetary policy through to the real...

Persistent link: https://www.econbiz.de/10005419683

Simultaneous monetary policy announcements and international stock markets response: an intraday analysis

Hussain, Syed Mujahid - Suomen Pankki - 2010

This paper investigates the return and volatility responses of major European and the US equity indices to monetary policy surprises using extensive intraday data on 5-minute price quotes along with a comprehensive dataset on monetary policy decisions and macroeconomic news. Our results show...

Persistent link: https://www.econbiz.de/10008626081

Learning as a rational foundation for macroeconomics and finance

Evans, George W; Honkapohja, Seppo - Suomen Pankki - 2011

Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models in real time. This approach provides a stability test for...

Persistent link: https://www.econbiz.de/10008918570

Central bank liquidity auction mechanism design and the interbank market

Ollikka, Kimmo; Tukiainen, Janne - Suomen Pankki - 2013

mechanisms, we need to make a lot of assumptions and simplications. Given this caveat, we find that posted prices with full …

Persistent link: https://www.econbiz.de/10010698833

Careful price level targeting

Waters, George A. - Suomen Pankki - 2012

This paper examines a class of interest rate rules that respond to public expectations and to lagged variables. Varying levels of commitment correspond to varying degrees of response to lagged output and targeting of the price level. If the response rises (unintentionally) above the optimal...

Persistent link: https://www.econbiz.de/10010818976

Targeting nominal GDP or prices: Guidance and expectation dynamics

Mitra, Kaushik; Honkapohja, Seppo - Suomen Pankki - 2014

We examine global dynamics under infinite-horizon learning in New Keynesian models where monetary policy practices either pricelevel or nominal GDP targeting and compare these regimes to inflation targeting. These interest-rate rules are subject to the zero lower bound. Robustness of the three...

Persistent link: https://www.econbiz.de/10010818984

Welfare and bond pricing implications of fiscal stabilization policies

Christoffel, Kai; Jaccard, Ivan; Kilponen, Juha - Suomen Pankki - 2013

How do cyclical fiscal stabilisation policies affect welfare and government bond risk premia? Using a new Keynesian model we find that the effects of fiscal policy rules on the bond premium and welfare crucially depend on the source of business cycle fluctuations. The overall effect is estimated...

Persistent link: https://www.econbiz.de/10010818989

Optimal fiscal policy of a monetary union member

Orjasniemi, Seppo - Suomen Pankki - 2014

In this essay we study the optimal non-coordinated fiscal policy in a monetary union, where a common and independent monetary authority commits to optimally set the union-wide nominal interest rate. The national governments in the monetary union implement independent fiscal policies by choosing...

Persistent link: https://www.econbiz.de/10010819002

Sovereign risk, European crisis resolution policies and bond yields

Kilponen, Juha; Laakkonen, Helinä; Vilmunen, Jouko - Suomen Pankki - 2012

We study the effects of the ECB monetary policy and the European crisis resolution policies on the 10 year sovereign bond yields of seven European countries. We find that some of the decisions have had significant impact on sovereign bond yields and have succeeded in reducing stress in the...

Persistent link: https://www.econbiz.de/10011191539