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I provide a simple general equilibrium model of monetary policy implementation and pass-through for undergraduate and graduate teaching. Besides a household and a firm, the model features a continuum of commercial banks, a government, and a central bank. The household uses deposits and cash to...
Persistent link: https://www.econbiz.de/10012170663
match Canadian macroeconomic data since Canada's adoption of inflation targeting. We use the model to provide a quantitative … assessment of the macroeconomic impact of flexible inflation targeting and some alternative monetary policy regimes. These … alternative monetary policy regimes are average-inflation targeting, price-level targeting and nominal gross domestic product …
Persistent link: https://www.econbiz.de/10013161512
Since 1991, the Bank of Canada has had an inflation‐targeting (IT) framework established by a joint agreement between … inflation‐control agreement. This discussion paper summarizes some interim results from Bank staff analysis done for the August … analysis later in 2021. The core of the current framework-the 2 percent inflation target-has remained unchanged since 1995 …
Persistent link: https://www.econbiz.de/10012613645
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In this paper, we argue that inflation targeting could be the future of Tunisia's monetary policy. Monetary targeting … reserves, current account deficit, and inflation differentials with main trading partners. The Central Bank of Tunisia has … already made important progress toward inflation targeting. The paper evidences the existence of increasingly effective …
Persistent link: https://www.econbiz.de/10012301899
The study empirically examines the impact of bank diversification on monetary policy transmission through the bank lending channel. Based on monetary and bank-level data from 2008 to 2018 in Vietnam, a diverse environment of monetary policy tools, results show that bank diversification...
Persistent link: https://www.econbiz.de/10013183758
inflation rate reduces investment and welfare. This is because the money market is an outside option for banks that face bad …
Persistent link: https://www.econbiz.de/10012018953
Interest rates in China are composed of a mix of both market-determined interest rates (interbank rates and bond yields), and regulated interest rates (retail lending and deposit rates), reflecting China's gradual process of interest rate liberalization. This paper investigates the main drivers...
Persistent link: https://www.econbiz.de/10009757286