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Inflation Targeting by Debtor Central Banks in Emerging Market Economies
Loeffler, Axel - 2013
to accumulate massive foreign reserves. If left unsterilized, the liquidity expansion can threaten domestic macroeconomic … stability. To contain domestic inflation these central banks absorb rather then provide liquidity in their regular monetary … surplus liquidity is less efficient, because absorbing liquidity raises the costs of monetary policy operations. By …
Persistent link: https://www.econbiz.de/10013094452
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Is Optimal Monetary Policy Always Optimal?
Davig, Troy - 2015
No. And not only for the reason you think. In a world with multiple inefficiencies the single policy tool the central bank has control over will not undo all inefficiencies; this is well understood. We argue that the world is better characterized by multiple inefficiencies and multiple policy...
Persistent link: https://www.econbiz.de/10013017379
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Hitting and Hoping? Meeting the Exchange Rate and Inflation Criteria During a Period of Nominal Convergence
Lewis, John - 2013
This paper analyses the problem faced by CEECs wishing to join the Euro who must hit both an inflation and exchange rate criterion during a period of nominal convergence. This process requires either an inflation differential, an appreciating nominal exchange rate, or a combination of the two,...
Persistent link: https://www.econbiz.de/10012754017
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Monetary Policy Rules in Emerging Countries : Is There an Augmented Nonlinear Taylor Rule?
Caporale, Guglielmo Maria - 2016
This paper examines the Taylor rule in five emerging economies, namely Indonesia, Israel, South Korea, Thailand, and Turkey. In particular, it investigates whether monetary policy in these countries can be more accurately described by (i) an augmented rule including the exchange rate, as well as...
Persistent link: https://www.econbiz.de/10012986234
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Monetary Policy in a Channel System
Berentsen, Aleksander - 2019
Channel systems for conducting monetary policy are becoming increasingly popular. Despite its popularity, the consequences of implementing policy with a channel system are not well understood. The authors develop a general equilibrium framework of a channel system and study the optimal policy. A...
Persistent link: https://www.econbiz.de/10012746483
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Central Bank Independence and Conservatism Under Uncertainty : Substitutes or Complements?
Hefeker, Carsten - 2013
The paper examines the optimal combination of central bank independence and conservatism in the presence of uncertain central bank preferences. We develop a model of endogenous monetary policy delegation in which government chooses the central bank's degree of inde-pendence and conservatism so...
Persistent link: https://www.econbiz.de/10013093869
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Was Bernanke Right? Targeting Asset Prices May Not Be a Good Idea After All
Assenza, Tiziana - 2013
Should the central bank prevent 'excessive' asset price dynamics or should it wait until the boom spontaneously turns into a crash and intervene only afterwards? The debate over this issue goes back at least to the exchange between Bernanke-Gertler (BG) and Cecchetti but has not settled yet. In...
Persistent link: https://www.econbiz.de/10013092104
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Hyperbolic Discounting and Positive Optimal Inflation
Graham, Liam - 2013
The Friedman rule states that steady-state welfare is maximized when there is deflation at the real rate of interest. Recent work by Khan et al (2003) uses a richer model but still finds deflation optimal. In an otherwise standard new Keynesian model we show that, if households have hyperbolic...
Persistent link: https://www.econbiz.de/10013092871
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The Impact of Monetary Strategies on Inflation Persistence
Kočenda, Evžen - 2017
We analyze the impact of price stability-oriented monetary strategies (inflation targeting — IT — and constraining exchange rate arrangements) on inflation persistence using a time-varying coefficients framework in a panel of 68 countries (1993–2013). We show that explicit IT has a...
Persistent link: https://www.econbiz.de/10012962672
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Monetary Policy in Turkey after Central Bank Independence
Gürkaynak, Refet S. - 2015
We present an accessible narrative of the Turkish economy since its great 2001 crisis. We broadly survey economic developments and pay particular attention to monetary policy. The data suggests that the Central Bank of Turkey was a strong inflation targeter early in this period but began to pay...
Persistent link: https://www.econbiz.de/10013011437