The most popular method of measuring structural budget balances is the “gaps plus elasticities” approach. Abtract: In this paper, it is argued that the idiosyncratic features of an economy need to be accounted for properly when seeking to achieve good estimates of structural budget balances...

This paper sets out to interpret the close to balance provision of the Stability and Growth Pact and what it requires of member states in setting their budgetary targets. Among the conclusions reached are that a budgetary position of close to balance or in surplus can be objectively calculated...

With a favourable demographic profile, a budget balance currently in surplus and gross government debt under 60 per cent of GDP, Ireland would appear to be an economy with time on its side before any concerns about fiscal sustainability arise. In this paper, it is argued that favourable baseline...

The impact of uncertainty on money growth has occupied a prominent place in monetary policy analysis in recent years. Some papers examining this issue use ad hoc estimates and measure variability rather than uncertainty. We employ a multivariate GARCH model, which measures uncertainty by the...

Models of inflation usually have monetary policy impacting the economy through either an interest rate or a monetary/credit quantity channel but not through both. We argue that policy is transmitted via two distinct types of agents – those that are and that are not liquidity constrained. The...

The influence of commodity prices on consumer prices is usually seen as originating in commodity markets. We argue, however, that long run and short run relationships should exist between commodity prices, consumer prices and money and that the influence of commodity prices on consumer prices...

We argue that long run and dynamic relationships should exist between commodity prices, consumer prices and money. Using a cointegrating VAR framework and US data, our empirical analysis shows equilibrium relationships existing between money, commodity prices and consumer prices, with both...

The influence of commodity prices on consumer prices is usually seen as originating in commodity markets. We argue, however, that long run and short run relationships should exist between commodity prices, consumer prices and money and that the influence of commodity prices on consumer prices...