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Optimal interest rate rules and inflation stabilization versus price-level stabilization

Giannoni, Marc Paolo - 2012

This paper compares the properties of interest rate rules such as simple Taylor rules and rules that respond to price-level fluctuations - called Wicksellian rules - in a basic forward-looking model. By introducing appropriate history dependence in policy, Wicksellian rules perform better than...

Persistent link: https://www.econbiz.de/10009522769

Estimating the Implicit Inflation Target : An Application to U.S. Monetary Policy

Leigh, Daniel - 2008

This paper proposes a new method of estimating the Taylor rule with a time-varying implicit inflation target and a time-varying natural rate of interest. The inflation target and the natural rate are modeled as random walks and are estimated using maximum likelihood and the Kalman filter. I...

Persistent link: https://www.econbiz.de/10012768153

Determinacy and E-stability with Interest Rate Rules at the Zero Lower Bound

Eo, Yunjong; McClung, Nigel - 2021

environment, determinacy conditions ensure a unique equilibrium, given the recurrence of ZLB events, and E-stability conditions … as a special case, most effectively promotes determinacy and E-stability among the policy frameworks, while the economy … under a standard inflation targeting rule is prone to indeterminacy. Average inflation targeting can promote determinacy and …

Persistent link: https://www.econbiz.de/10013231398

Determinacy and E-stability with interest rate rules at the zero lower bound

Eo, Yunjong; McClung, Nigel - 2021

bound regimes. We use determinacy and expectational stability (E-stability) of equilibrium as the criteria for stabilization … promotes determinacy and E-stability among the policy frameworks, whereas standard inflation targeting rules are prone to … indeterminacy. Average inflation targeting can induce determinacy and E-stability effectively, provided the averaging window is …

Persistent link: https://www.econbiz.de/10012665278

Determinacy and E-Stability with Interest Rate Rules at the Zero Lower Bound

Eo, Yunjong; McClung, Nigel - 2021

Persistent link: https://www.econbiz.de/10013314662

Optimal Interest Rate Rules and Inflation Stabilization versus Price-Level Stabilization

Giannoni, Marc P. - 2012

This paper compares the properties of interest rate rules such as simple Taylor rules and rules that respond to price-level fluctuations — called Wicksellian rules — in a basic forward-looking model. By introducing appropriate history dependence in policy, Wicksellian rules perform better...

Persistent link: https://www.econbiz.de/10013110962

Reconsidering the Role of Money for Output, Prices and Interest Rates

Giordani, Paolo; Favara, Giovanni - 2003

New Keynesian models of monetary policy assign no role to monetary aggregates, in the sense that the level of output, prices, and interest rates can be determined without knowledge of the quantity of money. We evaluate the empirical validity of this prediction by studying the effects of shocks...

Persistent link: https://www.econbiz.de/10014101912

Modeling which factors impact interest rates

Wang, Guizhou; Hausken, Kjell - In: Journal of central banking theory and practice 12 (2023) 2, pp. 211-237

The Taylor (1993) rule for determining interest rates is generalized to account for three additional variables: The money supply, money velocity, and the unemployment rate. Thus, five parameters, i.e. weights assigned to the deviation in the inflation rate, the deviation in real GDP (Gross...

Persistent link: https://www.econbiz.de/10014316675

Inflation persistence, Price Indexation and Optimal Simple Interest Rate Rules

Ascari, Guido; Branzoli, Nicola - 2010

We study the properties of the optimal nominal interest rate policy under different levels of price indexation. In our model indexation regulates the sources of inflation persistence. When indexation is zero, the inflation gap is purely forward- looking and inflation persistence depends only on...

Persistent link: https://www.econbiz.de/10010343884

Disagreement à la Taylor : evidence from survey microdata

Dräger, Lena; Lamla, Michael - 2015

There is a growing interest in studying the disagreement of economic agents. Most studies, however, focus on the disagreement regarding one specific variable, hereby neglecting that disagreement may be comoving with disagreement on other variables. In this paper we explore to which extent...

Persistent link: https://www.econbiz.de/10010526685

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