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with expected inflation. Given the importance of this adjustment for questions of both monetary theory and monetary policy … nominal interest rates and expected price inflation, portfolio behavior is the most plausibly flexible in the short run. Since … important lenders' portfolio behavior can be in bringing about the adjustment of interest rates which Fisher's theory associates …
Persistent link: https://www.econbiz.de/10012763220
short-run inflation rate. Over the last century real stock prices have shown little reaction to changes in inflation rates …
Persistent link: https://www.econbiz.de/10012767717
In a recent paper, Canzoneri, Henderson, and Rogoff have shown that it is possible for the monetary authority to peg the nominal interest rate without creating price level indeterminacy in a simplified version of the 1975 Sargent-Wallace model. The present paper begins by reviewing that result,...
Persistent link: https://www.econbiz.de/10013219333
This paper reconsiders a result obtained by Sargent and Wallace, namely, that price level indeterminacy obtains in their well-known model if the monetary authorities adopt a policy feedback rule for the interest rate rather than the money stock. Since the Federal Reserve seems often to have used...
Persistent link: https://www.econbiz.de/10013219724
This note demonstrates that Bennett McCallum's recent critique of low frequency estimates of macro-economic relationships is of little empirical significance. It also demonstrates that readily available and frequently used techniques can be used to diagnose the problem McCallum raises. Finally,...
Persistent link: https://www.econbiz.de/10013310822
This paper investigates the hypothesis that surprise changes in the money supply and anticipated inflation (the Mundell … surprises and expected real interest or an inverse relationship between anticipated inflation and expected real interest. These …
Persistent link: https://www.econbiz.de/10013211690
inflation rate is -.17. The corresponding correlation for the period 1950 to 1979 is .71. Inflation evolved from essentially a … stochastic process of inflation, rather than a change in any structural relationship between nominal rates and expectedi nflation …. I find little evidence of inflation non-neutrality in data from the gold standard period.This contradicts the conclusion …
Persistent link: https://www.econbiz.de/10013234382
-employed individuals, we find robust evidence that women in Italy pay more for overdraft facilities than men. We could not find any …
Persistent link: https://www.econbiz.de/10012770789
The relative popularity of adjustable-rate mortgages (ARMs) and fixed-rate mort- gages (FRMs) varies considerably both across countries and over time. We ask how movements in current and expected future interest rates affect the share of ARMs in total mortgage issuance. Using a nine-country...
Persistent link: https://www.econbiz.de/10013048590
the literature for Italy, interest rates on shortterm lending of liquid and well-capitalized banks react less to a …
Persistent link: https://www.econbiz.de/10013246682