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Inflation dynamics in Brazil are high and volatile. This short paper seeks to shed some light on the features of … inflation in Brazil and provides a non-exhaustive list, in the way of a primer, of factors that are especially important. It … also offers some suggestions for how monetary policy could deal with these factors to control inflation and bring interest …
Persistent link: https://www.econbiz.de/10012979146
This paper analyzes the effects of legal central bank independence (CBI) on inflation volatility in developing … countries. We discuss why CBI should curb inflation volatility, independently from its effect via lowering inflation levels … the endogeneity of CBI and inflation. Our results are robust to alternative measurements of the main variables, different …
Persistent link: https://www.econbiz.de/10014344441
We study whether clarity of central bank inflation reports affects return volatility in financial markets. We measure …
Persistent link: https://www.econbiz.de/10013045263
We study whether clarity of central bank inflation reports affects return volatility in financial markets. We measure …
Persistent link: https://www.econbiz.de/10013046714
We examine the effect of inflation variability and economic growth using annual historical data on both developing and … inflation variability by the five-year coefficient of variation of inflation, we obtain the following results: (1) For … developing countries, there is significant evidence to suggest that when the rate of inflation exceeds 10% inflation variability …
Persistent link: https://www.econbiz.de/10013038056
We analyse the interaction between private agents? uncertainty about inflation target and the central bank's data … uncertainty. In our model, private agents update their perceived inflation target and the central bank estimates unobservable … economic shocks as well as the perceived inflation target. Under those two uncertainties, the learning process of both private …
Persistent link: https://www.econbiz.de/10012991139
In this paper we model the volatility of the spread between the overnight interest rate and the central bank policy rate (the policy spread) for the euro area and the UK during the two main phases of the financial crisis that began in late 2007. During the crisis, the policy spread exhibited...
Persistent link: https://www.econbiz.de/10003983199
We explore the effect of volatility in the federal funds market on the expectations hypothesis in money markets. We find that lower volatility in the bank funding markets market, all else equal, leads to a lower term premium and thus longer-term rates for a given setting of the overnight rate....
Persistent link: https://www.econbiz.de/10009315678
In this paper we model the volatility of the spread between the overnight interest rate and the central bank policy rate (the policy spread) for the euro area and the UK during the two main phases of the financial crisis that began in late 2007. During the crisis, the policy spread exhibited...
Persistent link: https://www.econbiz.de/10009129975
Money market volatility may disrupt the transmission mechanism of monetary policy as well as increase uncertainty for market participants. This paper assesses the impact of reforms to the Bank of England's operating framework over the last two decades. These reforms have been successful in...
Persistent link: https://www.econbiz.de/10012994481