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rate cuts to stimulate the economy and lift inflation back to target in the immediate aftermath of the GFC. …
Persistent link: https://www.econbiz.de/10011871950
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-term interest rates to the Bank of England's inflation report and to macroeconomic announcements. Due to the quarterly frequency at … predicts that, the more time has elapsed since the latest release of an inflation report, market volatility should increase … evidence is fully supportive of these hypotheses. -- Public signals ; inflation reports ; monetary policy ; interest rates …
Persistent link: https://www.econbiz.de/10003963731
We establish basic facts about the external finance premium. Tens of millions of individual loan contracts extended to euro area firms allow studying the determinants of the external finance premium at the country, bank, firm, and contract levels of disaggregation. At the country level, the...
Persistent link: https://www.econbiz.de/10014527119
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We analyze the properties of the natural rate of interest in an economy where nominal debt contracts generate a spread between loan rates and the policy interest rate. In our model, monetary policy has real effects in the flexible-price equilibrium, because it affects the credit spread. Relying...
Persistent link: https://www.econbiz.de/10003778772
explores implications for growth, innovation, inflation, financial markets, fiscal policy, and several socio-economic outcomes …, adjustment in energy markets, increased inflation variability, financial markets stress, intensified innovation, increased …
Persistent link: https://www.econbiz.de/10014230344
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ingredient to model. In fact, I found that the estimated premium is a very powerful predictor of inflation. It overcomes, in … ; Euro Area External Finance Premium ; Financial Accelerator ; Bayesian Estimation ; Inflation …
Persistent link: https://www.econbiz.de/10003972629
This survey reviews the literature about the impact of climate change on the natural rate of interest (r*), an important yardstick for monetary policy. Economic and financial developments can lower r* in scenarios with increasing climate-related damages and uncertainty that reduce productivity...
Persistent link: https://www.econbiz.de/10013448676