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proportionally to inflation. We show that conditions under which these rules generate aggregate instability by inducing liquidity … that respond to expected future inflation are more prone to induce endogenous cyclical and chaotic dynamics the more open …
Persistent link: https://www.econbiz.de/10013102282
A prolonged low-interest-rate environment presents a significant challenge to banks and is likely to entail major changes to their business models over the long-run. Lower returns to maturity transformation in the face of flatter yield curves and an inability to offer deposit rates significantly...
Persistent link: https://www.econbiz.de/10012910355
The workhorse open-economy macro model suggests that capital inflows are contractionary because they appreciate the currency and reduce net exports. Emerging market policy makers however believe that inflows lead to credit booms and rising output, and the evidence appears to go their way. To...
Persistent link: https://www.econbiz.de/10013002152
literature, that a one-percent rise in the long-run projected debt-to-GDP ratio causes an increase in bond yields of a relatively …
Persistent link: https://www.econbiz.de/10013022258
times. An inflation shock only slightly reduces the debt ratio for a few quarters. A positive growth shock unambiguously …
Persistent link: https://www.econbiz.de/10013098577
, and current account liberalization; and (ii) inflation and various determinants, including lagged inflation, the nominal … and the real exchange rate are significant determinants but not the exchange regime or liberalization; and for inflation …, the lagged inflation rate, nominal exchange rate, and the de facto regime are significant. Exchange rate pass-through is …
Persistent link: https://www.econbiz.de/10013102259
-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a … breakdown of the relation between inflation and activity. To examine the first, we look at 122 recessions over the past 50 years … unemployment on inflation,for given expected inflation, decreased until the early 1990s, but has remained roughly stable since then …
Persistent link: https://www.econbiz.de/10013002151
by export market growth; that inflation has been associated with weaker output only above a threshold inflation rate …
Persistent link: https://www.econbiz.de/10013212115
large panel of countries over the period 1970–2020. The results shows that both inflation and real GDP growth respond …What is the impact of climate change on inflation and growth dynamics? This is not a simple question to answer as … climate-related shocks affect inflation and economic growth also depends on long-run scarring in the economy and the country …
Persistent link: https://www.econbiz.de/10014354589
This paper examines the long-run relationship between consumer price index industrial workers (CPI-IW) inflation and … GDP growth in India. We collect data on a sample of 14 Indian states over the period 1989-2013, and use the cross …, there is a negative long-run relationship between inflation and economic growth in India. We also find statistically …
Persistent link: https://www.econbiz.de/10013028686