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A Practical Model-Based Approach to Monetary Policy Analysis: Overview

Laxton, Douglas; Berg, Andrew; Karam, Philippe D - International Monetary Fund (IMF) - 2006

This paper motivates and describes an approach to forecasting and monetary policy analysis based on the use of a simple structural macroeconomic model, along the lines of those in use in a number of central banks. It contrasts this approach with financial programming and its emphasis on monetary...

Persistent link: https://www.econbiz.de/10005768925

Money Demand and Inflation in Dollarized Economies; The Case of Russia

Ohnsorge, Franziska; Oomes, Nienke - International Monetary Fund (IMF) - 2005

inflation. In this paper, we show that a stable money demand function for Russia can be found for "effective broad money," which … effect on short-run inflation. …

Persistent link: https://www.econbiz.de/10005769060

Day-To-Day Monetary Policy and the Volatility of the Federal Funds Interest Rate

Prati, Alessandro; Bertola, Giuseppe; Bartolini, Leonardo - International Monetary Fund (IMF) - 2000

We propose a model of the interbank money market with an explicit role for central bank intervention and periodic reserve requirements, and study the interaction of profit-maximizing banks with a central bank targeting interest rates at high frequency. The model yields predictions on biweekly...

Persistent link: https://www.econbiz.de/10005769266

China; Strengthening Monetary Policy Implementation

Laurens, Bernard; Maino, Rodolfo - International Monetary Fund (IMF) - 2007

The People's Bank of China (PBC) has made great strides in modernizing its monetary policy frameworks but their effectiveness will diminish as the sophistication of the economy increases. Empirical evidence supports maintaining a reference to money in China's monetary strategy and enhancing the...

Persistent link: https://www.econbiz.de/10005769272

Selected Issues Concerning Monetary Policy and Institutional Design for Central Banks; A Review of Theories

Beddies, Christian H. - International Monetary Fund (IMF) - 2000

In the past decades, much work has been geared toward solving the problem of time inconsistency in monetary policy and analyzing the coordination problem between fiscal and monetary policy. This paper provides a review of the theoretical background to these theories, while also focusing on their...

Persistent link: https://www.econbiz.de/10005826014

Some Implications for Monetary Policy of Uncertain Exchange Rate Pass-Through

Hunt, Ben; Isard, Peter - International Monetary Fund (IMF) - 2003

The paper uses MULTIMOD to examine the implications of uncertain exchange rate pass-through for the conduct of monetary policy. From the policymaker's perspective, uncertainty about exchange rate pass-through implies uncertainty about policy multipliers and the impact of state variables on...

Persistent link: https://www.econbiz.de/10005826051

A Political Agency Theory of Central Bank Independence

Eggertsson, Gauti B.; Borgne, Eric Le - International Monetary Fund (IMF) - 2003

We propose a theory to explain why, and under what circumstances, a politician gives up rent and delegates policy tasks … to an independent agency. We apply this theory to monetary policy by extending a standard dynamic "New …-Keynesian" stochastic general equilibrium model. This model gives a new theory of central bank independence that is unrelated to the …

Persistent link: https://www.econbiz.de/10005826126

Fixed Exchange Rates and the Autonomy of Monetary Policy; The Franc Zone Case

Veyrune, Romain - International Monetary Fund (IMF) - 2007

This paper compares monetary policy of currency boards with that of the franc zone during the period 1956-2005. It concludes that monetary policy in the zone was more autonomous than under a currency board, even though both systems faced the same exchange rate constraint. So far, the contingency...

Persistent link: https://www.econbiz.de/10005826392

Inflation Determinants in Paraguay; Cost Push Versus Demand Pull Factors

Monfort, Brieuc; Peña, Santiago - International Monetary Fund (IMF) - 2008

This article uses two analytical methodologies to understand the dynamics of inflation in Paraguay, the mark-up theory … of inflation and the monetary theory of inflation. We also study the impact of different monetary aggregates. The results … suggest that monetary factors, in particular currency in circulation, play a major role in determining long-run inflation …

Persistent link: https://www.econbiz.de/10005826475

Dollarization, Monetary Policy, and the Pass-Through

Ize, Alain; Parrado, Eric - International Monetary Fund (IMF) - 2002

This paper explores how real dollarization (dollar indexing of wages), financial dollarization (dollar denomination of financial contracts), and monetary policy interact in a general equilibrium, new open-economy macroeconomics model with real shocks. Real dollarization is avoided as long as the...

Persistent link: https://www.econbiz.de/10005826531