formulate a model of financing. New Keynesian theory emphasizes that a firm's net worth influences investment decisions and … banks lending reaction to the net worth ratio is more elastic than investment reaction. When the steady state is the saddle …

The low interest rate environment is less due to monetary policy and more due to global trends in investment and … savings as well as a crisis-induced reduction in investment. Finishing the balance sheet recession can lead to a higher … interest rate level in the medium-run through higher investment. A higher natural real interest rate would enable central banks …

bank not concerned with financial stability, reacting to inflation and output is considered optimal. Third, including …

This paper discusses the role of foreign exchange interventions in the inflation-targeting regime, focusing on the … Czech experience since 1998. It concludes that the case for foreign exchange interventions is not clear in an inflation … effectiveness. Third and most importantly, the interventions may lead to tensions with the philosophy of the inflation targeting …

inflation target, to March 2007. We also investigate several model-based methods of estimating forward term premia, in order to …

financial stability. For this purpose, monetary policy is described by a flexible inflation targeting regime using the interest …

The purpose of this report is to derive lessons from inflation targeting in Sweden for the choice of the future … monetary policy regime of Iceland. Swedish inflation targeting has been a success in terms of reducing inflation and inflation …

We propose a novel framework to gauge the credibility of central banks' commitment to an inflation-targeting regime … inflation targeting makes economic agents change their perception about central bank decisions. Specifically, using the Reserve … Bank of India's adoption of inflation targeting in 2015 as a laboratory, we apply two different approaches to estimate a …