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Persistent link: https://www.econbiz.de/10005414999
The European Central Bank (ECB) assigns greater weight to the role of money in its monetary policy strategy than most, if not all, other major central banks. Nevertheless, reflecting the view that the demand for money became unstable in the early 2000s, some commentators have reported that the...
Persistent link: https://www.econbiz.de/10011026875
In 1998 the European Central Bank (ECB) became the world’s 173rd central bank. The Eurosystem, with its structure of national central banks and the ECB, is similar to the Federal Reserve System, with its District Banks and Board of Governors. However, important differences exist in the way the...
Persistent link: https://www.econbiz.de/10005519761
Proponents of an aggregation theoretic approach to money demand argue that simple-sum measures do not capture the theoretical notion of money, especially for broad monetary aggregates. European monetary aggregation, which uses indices for monetary services, seems attractive because these indices...
Persistent link: https://www.econbiz.de/10005726123
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rules on inflation persistence, the information content of monetary data, and real variables. They show that inflation … persistence and the variability of inflation relative to money growth depend on whether the central bank follows a money growth … rule or an interest rate rule. With a money growth rule, inflation is not persistent and the price level is much more …
Persistent link: https://www.econbiz.de/10005415049
Interest rates sometimes seem to respond to Federal Reserve policy actions in unexpected ways--for example, falling when the Fed " tightens" monetary policy or rising when the Fed "eases" policy. In this article, Michael R. Pakko and David C. Wheelock attempt to demystify such responses. They...
Persistent link: https://www.econbiz.de/10005415314
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been falling for almost 20 years, as the levels of interest rates and inflation have fallen. And changes in implied …
Persistent link: https://www.econbiz.de/10005519639
Persistent link: https://www.econbiz.de/10005519732