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Central bank’s two-way communication with the public and inflation dynamics

Aoki, Kosuke; Kimura, Takeshi - Centre for Economic Performance <London> - 2008

two-way communication between the central bankand the public affects inflation dynamics. When inflation target is … hence the bank can stabilize inflation. However, when inflation targetis unobservable or less credible, the public updates … their perceived inflation target and theinformation revealed from markets to the bank becomes less perfect. The degree of …

Persistent link: https://www.econbiz.de/10005870381

Globalisation and the determinants of domestic inflation

White, William - Bank für Internationalen Zahlungsausgleich <Basel> - 2008

The remarkable stability of low domestic inflation in many countries requires explanation. In this paper, a number of … continuing low inflation, but also its coexistence with rapid growth and low real interest rates. Unfortunately, the analysis …

Persistent link: https://www.econbiz.de/10009305090

PRICE-LEVEL DETERMINATION UNDER DISPERSED INFORMATION AND MONETARY POLICY

Aoki, Kosuke - London School of Economics and Political Science - 2006

This paper considers the determination of aggregate price level under dispersed information.A Central Bank sets policy in response to its noisy measure of the price level, andeach agent makes its decisions by observing a subset of data. Information revealed to theagents and the bank is...

Persistent link: https://www.econbiz.de/10005870374

Talking about monetary policy: the virtues (and vice?) of central bank communication

Blinder, Alan S. - Bank für Internationalen Zahlungsausgleich <Basel> - 2009

Central banks, which used to be so secretive, are communicating more and more these days about their monetary policy. This development has proceeded hand in glove with a burgeoning new scholarly literature on the subject. The empirical evidence, reviewed selectively here, suggests that...

Persistent link: https://www.econbiz.de/10009138505

DSGE models and central banks

Tovar, Camilo - Bank für Internationalen Zahlungsausgleich <Basel> - 2008

Over the past 15 years there has been remarkable progress in the specification and estimation of dynamic stochastic general equilibrium (DSGE) models. Central banks in developed and emerging market economies have become increasingly interested in their usefulness for policy analysis and...

Persistent link: https://www.econbiz.de/10009305062

Monetary Policy Rules in Central and Eastern Europe

Frömmel, Michael; Schobert, Franziska - Universität <Hannover> / Wirtschaftswissenschaftliche … - 2006

We estimate monetary policy rules for six central and eastern European countries (CEEC) bytaking changes in the policy settings explicitly into account. Distinguishing rather fixed andmore flexible exchange rate arrangements we find that for most countries exchange ratesplayed an important role...

Persistent link: https://www.econbiz.de/10005867497

On the optimal monetary policy response to noisyindicators

Aoki, Kosuke - London School of Economics and Political Science - 2002

We describe a behavior of a central bank when its measures of current inflation and outputare subject to measurement … rateresponds to the central bank’s estimates of both current inflation and output gap, as advocatedby Taylor (1993)... …

Persistent link: https://www.econbiz.de/10005869371

Explaining Inflation Persistence by a Time-Varying Taylor Rule

Conrad, Christian; Eife, Thomas A. - Alfred-Weber-Institut für Sozial- und … - 2010

In a simple New Keynesian model, we derive a closed form solution for the inflationpersistence parameter as a function of the policy weights in the central bank’s Taylorrule. By estimating the time-varying weights that the FED attaches to inflationand the output gap, we show that the...

Persistent link: https://www.econbiz.de/10009248993

Testing Commitment Models of Monetary Policy:Evidence from OECD Economies

Doyle, Matthew; Falk, Barry - Iowa State University of Science and Technology <Ames, … - 2006

Inflation rates in a number of OECD follow a common trend over the past four decades: inflation starts out low in the … in the behavior of trend inflation suggests that any explanation of long run inflation trends ought to apply across OECD …-varying NAIRU, can explain long run trends in U.S. inflation. In this paper we show that this result cannot serve as an explanation …

Persistent link: https://www.econbiz.de/10009360915

MONETARY POLICY WITH AN ENDOGENOUS CAPITAL STOCKWHEN INFLATION IS PERSISTENT

Mash, Richard - University <Oxford> / Department of Economics - 2002

setting causes inflation persistence. We analyse how the endogeneityof the capital stock changes the macroeconomic dynamics …

Persistent link: https://www.econbiz.de/10005870253