Showing 51 - 60 of 1,565
In this paper a small econometric model with model-consistent expectations is adopted for the euro zone to study monetary and inflation targeting. Simulation results show that the 'costs' in terms of inflation and economic growth volatility are by and large lowest in case of inflation targeting....
Persistent link: https://www.econbiz.de/10014181684
The creation of European Monetary Union (EMU) poses a number of difficult problems for the European Central Bank (ECB). One of the major problems is related to the uncertainty about economic relationships within the euro area. The monetary strategy of the ECB is based on two pillars, one is the...
Persistent link: https://www.econbiz.de/10014185337
In this paper, the author aims to question the assumptions underlying the economic case for the independent European Central Bank (ECB) and argues that although a European Clearing Agency (ECA) of the type Keynes envisaged for the international economy is not a panacea for the economic problems...
Persistent link: https://www.econbiz.de/10014186660
This paper discusses how price stability can be defined and how price stability can be maintained in practice. Some lessons for the Eurosystem are also considered. With regard to defining price stability, the choice between price-level stability and low (including zero) inflation and the...
Persistent link: https://www.econbiz.de/10014186890
European Monetary Union will come into existence in 1999. This raises questions related to the monetary policy targets that will be adopted by the European Central Bank (ECB). For both likely candidates, targeting a money aggregate or an inflation target, the existence of a stable money demand...
Persistent link: https://www.econbiz.de/10014187757
Global macroeconometric models can be a powerful tool for economic analysis and forecasting in various scenarios. This paper analyses the NiGEM model and its application to the euro area, placing particular emphasis on the study of the relative situation of the member countries' economies. The...
Persistent link: https://www.econbiz.de/10014051321
The European Central Bank has assigned a special role to money in its two pillar strategy and has received much criticism for this decision. The case against including money in the central bank's interest rate rule is based on a standard model of the monetary transmission process that underlies...
Persistent link: https://www.econbiz.de/10014052010
Although the concept of core inflation is apparently well defined and intuitively appealing, its practical usefulness has often been questioned on at least two accounts: first, existing core inflation measures are by and large exclusively based on statistical criteria and thus lack a firm...
Persistent link: https://www.econbiz.de/10014052210
This paper estimates the natural real interest rate that is consistent with stable inflation and output at its potential for the euro area and Luxembourg. The natural interest rate provides a benchmark for assessing the monetary policy stance, as policy is contractionary when real interest rates...
Persistent link: https://www.econbiz.de/10014052407
This paper studies the transmission of monetary policy shocks from the US to the euro-area using a two-country structural VAR with no exogeneity assumption. The analysis reveals the following results. First, in response to an unexpected increase in the Federal funds rate, the euro immediately...
Persistent link: https://www.econbiz.de/10014053613