The aim of this study is to assess to what extent the Portuguese participation in the European Monetary System has been characterized by mean reverting behaviour, as predicted by the exchange rate target zone model developed by Krugman (1991). Although exchange rate mean reversion is widely...

As the globalization is increasing and economies are becoming more and more interdependent, some questions have gained more importance, for example, has globalization changed the inflation determinants? The control of monetary authority over domestic inflation & interest rate has decreased or...

When dealing with credit booms driven by capital inflows, monetary authorities in emerging markets are often reluctant to raise interest rates, as they fear that an increase attracts even more capital and appreciates the currency. A number of countries therefore use reserve requirements as an...

The role played by the banking sector in financing the economy in Morocco, following the reforms in the 1990s to liberalize the banking and financial sector, justifies our study of the transmission channels of monetary policy by its central bank (Bank Al-Maghrib). Our subject concerns the...

We generalize the concept of the natural rate of interest (Laubach i Williams, 2003; Woodford, 2003) by defining and estimating the the natural yield curve (NYC) - the term structure of natural interest rates. Our motivation stems i.a. from the observation that at times when central banks attempt to...

We investigate the monetary transmission mechanism in South Africa, a small open country, in terms of both the “timing and the effect” of monetary policy. We use a modelling approach that has not been utilised yet to do this. The trade shares of South Africa’s trading partners changed...

Considering the wide range of CPI applications in the economy, the accuracy of estimating changes in an average price of a consumer basket of goods attracts the attention of many economists. How the index of consumer prices is calculated is not, as it might seem, a merely statistical problem....

The aim of this paper is to derive the optimal inflation rate for the Euro Area (EA) countries from the relationship between relative price variability (RPV). In order to achieve the above stated goal, we have utilized monthly data for the Harmonized Index of Consumer Prices between January 1997...

A run on a bank occurs when a large number of depositors, fearing that their bank will be unable to repay their deposits in full and on time, simultaneously try to withdraw their funds immediately. A run on a particular bank can lead to a banking crisis if it spreads to other banks (contagious...

We examine the monetary implications of Anticipated Future Consumption streams in utility.Ramsey optimal growth modelPaper is finalized