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German and euro area economies will benefit from a U.S. interest rate hike in the short term

Hanisch, Max - In: DIW weekly report : economy, politics, science : a … 8 (2018) 12, pp. 115-121

To accompany the economic upturn in the U.S., the Federal Reserve Bank has been raising its benchmark interest rate incrementally. In an increasingly globalized world in which the American economy plays a key role, an action like this has spillover effects on the international level. Based on a...

Persistent link: https://www.econbiz.de/10011812710

Missing events in event studies : identifying the effects of partially-measured news surprises

Gürkaynak, Refet S.; Kısacıkoğlu, Burçin; Wright, … - 2018

Macroeconomic news announcements are elaborate and multi-dimensional. We consider a framework in which jumps in asset prices around macroeconomic news and monetary policy announcements reflect both the response to observed surprises in headline numbers and latent factors, reflecting other...

Persistent link: https://www.econbiz.de/10011900777

"Unconventional" monetary policy as conventional monetary policy : a perspective from the U.S. in the 1920s

Carlson, Mark; Duygan-Bump, Burcu - 2018

To implement monetary policy in the 1920s, the Federal Reserve utilized administered interest rates and conducted open market operations in both government securities and private money market securities, sometimes in fairly considerable amounts. We show how the Fed was able to effectively use...

Persistent link: https://www.econbiz.de/10011927094

Central bank capital as an instrument of monetary policy

Hampl, Mojmír; Havránek, Tomáš - 2018

We examine the use of central bank capital as an unconventional monetary policy tool. In this setting, a central bank employs digital currency to transfer digital cash to each household, thus supporting consumption directly when needed. The asset side of the central bank's balance sheet remains...

Persistent link: https://www.econbiz.de/10011906669

Not so fast : high-frequency financial data for macroeconomic event studies

Ozdagli, Ali - 2013

Over the last decade, it has become increasingly popular to use event studies with intraday asset pricing data to study the effect of macroeconomic events on the economy. The proponents of this approach argue that asset prices react to macroeconomic events very quickly and that if we know the...

Persistent link: https://www.econbiz.de/10010236186

Monetary policy transparency

Geraats, Petra M. - 2014

There has been a remarkable rise in the transparency of monetary policy during the last two decades. This paper provides an overview of the ways in which central banks have been providing more information about their monetary policymaking. Furthermore, it reviews the theoretical literature on...

Persistent link: https://www.econbiz.de/10010237274

The execution of monetary policy : a tale of two central banks

Bartolini, Leonardo (contributor); … - 2003 - [Elektronische Ressource]

The Eurosystem and the U.S. Federal Reserve System follow quite different approaches to the execution of monetary policy. The former institution adopts a "hands-off" approach that largely delegates to depository institutions the task of stabilizing their own liquidity at high frequency. The...

Persistent link: https://www.econbiz.de/10001752004

CONDI : a cost-of-nominal-distortions index

Eusepi, Stefano (contributor); Hobijn, Bart (contributor); … - 2009

We construct a price index with weights for the prices of different PCE (personal consumption expenditures) goods chosen to minimize the welfare costs of nominal distortions. In this cost-of-nominal-distortions index (CONDI), the weights are computed in a multi-sector New Keynesian model with...

Persistent link: https://www.econbiz.de/10003812575

The effects of monetary policy on unemployment dynamics under model uncertainty : evidence from the US and the Euro area

Altavilla, Carlo; Ciccarelli, Matteo - 2009

This paper explores the role that the imperfect knowledge of the structure of the economy plays in the uncertainty surrounding the effects of rule-based monetary policy on unemployment dynamics in the euro area and the US. We employ a Bayesian model averaging procedure on a wide range of models...

Persistent link: https://www.econbiz.de/10003813633

Does FOMC communication help predicting federal funds target rate changes?

Hayo, Bernd; Neuenkirch, Matthias - 2009

(FOMC) communication indicators. Econometrically, we employ an ordered probit model of a Taylor rule to predict 75 target … rate decisions between 1998 and 2006. We find, first, that FOMC communication is forward-looking, with a horizon that goes … beyond the next meeting. Second, our communication indicators significantly explain target rate changes and improve …

Persistent link: https://www.econbiz.de/10003852257