Examines the causal relationship between interest rates, savings and income in the Chinese economy over the period 1952 to 1999, using the cointegration test and Bayesian vector autoregression (BVAR) for empirical testing. The empirical evidence from the cointegration test confirms that there is...

This paper derives the optimal monetary policy under discretion, taking into account that aggregate spending depends on the long‐term real interest rate rather than on the short‐term rate. It deduces optimal shock‐dependent strategies for the monetary instrument, the nominal interest rate...

Purpose – Previous literature for the relations between the market interest rates and the targeted or target rate of the Federal Reserve paid little attention to Eurodollar market rates. The present paper attempts to fill this void. Design/methodology/approach – The study investigates the...

Purpose – The purpose of this paper is to contribute further on the twin deficits debate in a developing economy. Design/methodology/approach – The data for Thailand over three decades are used as a case study. Findings – The major findings are: first, a stable, long‐run equilibrium...

Purpose – The purpose of this paper is to study if the central bank (BC) communications affect the effectiveness of the monetary policy. Design/methodology/approach – For this analysis, a new Keynesian theoretical model and the ordinary least squared methodology were used. The objective to...

Purpose – This paper aims to study a monetary policy problem, where concerns with price stability and with the impact of interest rates on public debt are simultaneously addressed. Design/methodology/approach – The problem is analytically approached under a new Keynesian monetary policy...

Purpose – This research paper aims to discuss the effects of exchange rates on interest rates by using wavelet network methodology, which is a combination of wavelets and neural networks. Design/methodology/approach – The paper employs wavelet networks to analyse the relationships between...

Purpose – The purpose of this paper is to examine the inertia of monetary policy in the Jordanian economy, in which the monetary policy is neutral owing to the adoption of a fixed exchange rate with the US dollar. The question of the current paper is: Does monetary policy inertia exist in such...

Purpose – This analysis seeks to deal with the emerging economies and to reveal that, if the fiscal authority is accountable with a policy that stabilizes the public debt/GDP ratio, the consequence is a low Treasury bond risk premium. Design/methodology/approach – Based on the purpose of...

Purpose – The purpose of this paper is to establish a link between inflation uncertainty and interest rates for five inflation‐targeting countries. Design/methodology/approach – The approach takes the form of a time‐varying parameter model with a Generalized Autoregressive Conditional...