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This paper analyses the mechanics of simple interest rate rules for two models----one with backward and the other with forward looking, rational expectations. The approach is to consider policy when faced with a specific task reducing inflation in a stabilizing manner. The two models are: (i)...
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The interest rate represents an important monetary policy tool to steer investment in order to reach price stability. Therefore, implications of the exact form and magnitude of the interest rate-investment nexus for the European Central Bank’s effectiveness in a low interest rate environment...
Persistent link: https://www.econbiz.de/10012063971
The interest rate represents an important monetary policy tool to steer investment in order to reach price stability. Therefore, implications of the exact form and magnitude of the interest rate-investment nexus for the European Central Bank's effectiveness in a low interest rate environment...
Persistent link: https://www.econbiz.de/10012099559
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Der Zins ist ein wichtiges geldpolitisches Instrument zur Steuerung von Investitionen, um Preisstabilität zu … gewährleisten. Im derzeitigen Niedrigzinsumfeld rücken Implikationen der genauen Gestalt und der Größenordnung des Zins … untersucht. In diesem nicht-linearen Modell kommt es zu starken Reaktionen der Investitionsaktivität, sobald der Zins eine …
Persistent link: https://www.econbiz.de/10012034406
The interest rate represents an important monetary policy tool to steer investment in order to reach price stability. Therefore, implications of the exact form and magnitude of the interest rate-investment nexus for the European Central Bank's effectiveness in a low interest rate environment...
Persistent link: https://www.econbiz.de/10012151693
This paper investigates the performance of optimised interest rate rules when there is uncertainty about a key determinant of the monetary transmission mechanism, namely the degree of persistence characterising the inflation process. The paper focuses on the euro area and utilises two variants of...
Persistent link: https://www.econbiz.de/10009635885