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Central bank communications before, during and after the crisis : from open-market operations to open-mouth policy
Vayid, Ianthi - 2013
The days when secrecy and opacity were the bywords of central banking are gone. The advent of inflation targeting in the early 1990s acted as the catalyst for enhanced transparency and communications in the conduct of monetary policy. In the wake of the 2007 - 09 global financial crisis, this...
Persistent link: https://www.econbiz.de/10010202233
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Understanding firms' inflation expectations using the Bank of Canada's Business Outlook Survey
Richards, Simon; Verstraete, Matthieu - 2016
Inflation expectations are a key determinant of actual and future inflation and thus matter for the conduct of monetary policy. We study how firms form their inflation expectations using quarterly firm-level data from the Bank of Canada's Business Outlook Survey, spanning the 2001 to 2015...
Persistent link: https://www.econbiz.de/10011433529
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Changes in monetary regimes and the identification of monetary policy shocks : narrative evidence from Canada
Champagne, Julien; Sekkel, Rodrigo - 2017
We use narrative evidence along with a novel database of real-time data and forecasts from the Bank of Canada's staff economic projections from 1974 to 2015 to construct a new measure of monetary policy shocks and estimate the effects of monetary policy in Canada. We show that it is crucial to...
Persistent link: https://www.econbiz.de/10011777945
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Managing GDP tail risk
Duprey, Thibaut; Ueberfeldt, Alexander - 2020 - Last updated: January 28, 2020
We propose a novel framework to analyze how policy-makers can manage risks to the median projection and risks specific to the tail of gross domestic product (GDP) growth. By combining a quantile regression of GDP growth with a vector autoregression, we show that monetary and macroprudential...
Persistent link: https://www.econbiz.de/10012154134
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How do central bank projections and forward guidance influence private-sector forecasts?
Jain, Monica; Sutherland, Christopher S. - 2018
We construct a 23-country panel data set to consider the effect of central bank projections and forward guidance on private-sector forecast disagreement. We find that central bank projections and forward guidance matter mainly for private-sector forecast disagreement surrounding upcoming policy...
Persistent link: https://www.econbiz.de/10011777743
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Monetary commitment and the level of public debt
Gnocchi, Stefano; Lambertini, Luisa - 2016
We analyze the interaction between committed monetary policy and discretionary fiscal policy in a model with public debt, endogenous government expenditures, distortive taxation and nominal rigidities. Fiscal decisions lack commitment but are Markovperfect. Monetary commitment to an interest...
Persistent link: https://www.econbiz.de/10011431600
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Limited commitment, endogenous credibility and the challenges of price-level targeting
Cateau, Gino; Shukayev, Malik - 2018
central bank with such discretion undermines the credibility of the price-level target and weakens its effectiveness to … stabilize the economy through expectations. The endogenous nature of credibility also brings novel results relative to models … with exogenous timing of target resets. A much higher degree of credibility is needed to realize the stabilization benefits …
Persistent link: https://www.econbiz.de/10011946949
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A horse race of monetary policy regimes : an experimental investigation
Kostyshyna, Olena; Petersen, Luba; Yang, Jing - 2022 - Last updated: July 15, 2022
and NGDP initially have mixed success at achieving their targets, and these regimes do not gain credibility before the … economy enters into the ELB, where credibility is needed more than ever. …
Persistent link: https://www.econbiz.de/10013280118
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Gazing at r-star : a hysteresis perspective
Beaudry, Paul; Kartashova, Katya; Meh, Césaire Assah - 2023 - Last updated: January 12, 2023
Many explanations for the decline in real interest rates over the last 30 years point to the role that population aging or rising income inequality plays in increasing the long-run aggregate demand for assets. Notwithstanding the importance of such factors, the starting point of this paper is to...
Persistent link: https://www.econbiz.de/10013482643
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Risk and state-dependent financial frictions
Harding, Martín; Wouters, Rafael - 2022 - Last updated: August 9, 2022
We augment a standard New Keynesian model with a financial accelerator mechanism and show that financial frictions generate large state-dependent amplification effects. We fit the model to US data and show that, when shocks drive the model far away from the steady state, the nonlinear model...
Persistent link: https://www.econbiz.de/10013335014