Showing 1 - 10 of 105
This paper assesses the prospects for the new Polish monetary policy strategy of inflation targeting. Regarding the general requirements for implementing an inflation targeting strategy it appears that Poland has made sufficient progress in reducing fiscal dominance and hardening budget...
Persistent link: https://www.econbiz.de/10010275417
Output gap estimates at the current edge are subject to severe revisions. This study analyzes whether monetary aggregates can be used to improve the reliability of early output gap estimates as proposed by several theoretical models. A real-time experiment shows that real M1 can improve output...
Persistent link: https://www.econbiz.de/10010332852
This paper explores the influence of wage and price staggering on monetary persistence. First, our analysis indicates that the degree of monetary persistence generated by wage vis-à-vis price staggering depends on the relative competitiveness of the labor and product markets. We show that the...
Persistent link: https://www.econbiz.de/10010277975
In this paper we analyze the money demand functions of the four largest EMU countries and of the four-country (EMU-4 …) aggregate. We identify reasonable and stable money demand relationships for Germany, France and Spain as well as the EMU-4 … aggregate. For the case of Italy, results are less clear. From the estimated money demand functions, we derive both EMU-4 and …
Persistent link: https://www.econbiz.de/10010263515
This paper presents a multivariate analysis of a money demand system in Europe. The system comprises real broad money … identified: a money demand function and a long-run Fisher equation. Inflation does not play a role in the specification of the … European money demand function. Stability of money demand is generally seen as a precondition for monetary targeting. No …
Persistent link: https://www.econbiz.de/10010275451
nationally segmented banking systems. As a side effect, the national central banks substitute money market operations for cross …
Persistent link: https://www.econbiz.de/10010288223
We examine the indicator property of the monetary indicator for inflation. Using a P*-model, Svensson shows theoretically in a recent paper that the relationship between these two variables is rather tenuous. The present study employs empirical evidence on the relations in his model to quantify...
Persistent link: https://www.econbiz.de/10010332960
We study the macroeconomic effects of monetary policy during financial crises using a Bayesian panel vector autoregressive (PVAR) model for 20 advanced economies. We interact all of the endogenous variables with financial crisis dummies, which are constructed using the narrative approach. We...
Persistent link: https://www.econbiz.de/10011314555
Monetary policy rule parameters estimated with conventional estimation techniques can be severely biased if the estimation sample includes periods of low interest rates. Nominal interest rates cannot be negative, so that censored regression methods like Tobit estimation have to be used to...
Persistent link: https://www.econbiz.de/10010330392
In a model with forward-looking expectations, the paper examines communication of central bank forecasts when the inflation target is subject to unobserved changes. It characterizes the effect of disclosure of forecasts on inflation and output stabilization and the choice of an active versus...
Persistent link: https://www.econbiz.de/10010332955