Similar Search Results

Central bank independence and conservatism under uncertainty : substitutes or complements?

Hefeker, Carsten; Zimmer, Blandine - 2010

This paper revisits the trade-of between central bank independence and conservatism using a New Keynesian model with … holds. In this case, the optimal combination between independence and conservatism is characterised by complementarity …. -- Central bank independence ; Conservatism ; Transparency of monetary policy …

Persistent link: https://www.econbiz.de/10003950407

Behind closed doors : revealing the ECB's decision rule

Hayo, Bernd; Méon, Pierre-Guillaume - 2011

This paper aims at discovering the decision rule the Governing Council of the ECB uses to set interest rates. We construct a Taylor rule for each member of the council and for the euro area as a whole, and aggregate the interest rates they produce using several classes of decision-making...

Persistent link: https://www.econbiz.de/10009295661

What's on the ECB's mind? : monetary policy before and after the global financial crisis

Zahner, Johannes; Groß, Jonas - 2020

This paper analyzes the interest rate setting of the European Central Bank (ECB) both before and after the outbreak of the global financial crisis. In the current monetary policy literature, researchers typically select one Taylor rule-based model in order to analyze the interest rate setting of...

Persistent link: https://www.econbiz.de/10012162640

Forward guidance under the cost channel

Finck, David - 2020

A common finding in the literature is that forward guidance cannot be credible under discretionary policy as long as the zero lower bound is an one-off event. However, this is not the case when recurring episodes of zero interest rates are possible. In this paper, we contribute to this new...

Persistent link: https://www.econbiz.de/10012153467

Are Eastern European taylor reaction functions asymmetric in inflation or output : empirical evidence for four countries

Klose, Jens - 2018

Do central banks in Eastern European countries react asymmetrically and in a non-linear fashion to changes in inflation and output? We tackle this question by expanding the standard Taylor reaction function for the four inflation targeting countries Czech Republic, Hungary, Poland and Romania....

Persistent link: https://www.econbiz.de/10011803795

Managing financial market expectations : the role of central bank transparency and central bank communication

Neuenkirch, Matthias - 2010

In this paper, we study the influence of central bank transparency and informal central bank communication on the money market adjustment process between two interest rate decisions. The sample covers nine major central banks for the period from January 1999 to July 2007. We find, first, that...

Persistent link: https://www.econbiz.de/10008695544

Superstar central bankers

Neuenkirch, Matthias; Tillmann, Peter - 2013

The personalities of central bankers moved center stage during the recent financial crisis. Some central bankers even gained "superstar" status. In this paper, we evaluate the pivotal role of superstar central bankers by assessing the difference an outstanding governor makes to economic...

Persistent link: https://www.econbiz.de/10010223512

Regime-dependent effects of monetary policy shocks : evidence from threshold vector autoregressions

Mandler, Martin - 2010

This paper studies regime dependence in the effects of monetary policy shocks for the U.S. using a threshold vector autoregressive model. In a high inflation regime the standard results from the literature obtain. In a low inflation regime output shows no significant response to monetary policy...

Persistent link: https://www.econbiz.de/10003950519

Inflation targeting, credibility and non-linear Taylor rules

Neuenkirch, Matthias; Tillmann, Peter - 2012

In this paper we systematically evaluate how central banks respond to inflation deviations from target. We present a stylized New Keynesian model in which agents' inflation expectations are sensitive to inflation deviations from target. To (re-)establish credibility, optimal monetary policy...

Persistent link: https://www.econbiz.de/10009564263

Information or uncertainty shocks?

Baumgärtner, Martin - 2020

This paper shows that uncertainty has an impact on the effectiveness of monetary policy shocks. As uncertainty increases, so does the risk that a restrictive forward guidance shock will increase rather than decrease stock prices. This effect can be seen not only in high-frequency variables, but...

Persistent link: https://www.econbiz.de/10012542948