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In Africa, a number of countries like South Africa have adopted inflation targeting. In Nigeria, different monetary … policy regimes have been adopted over the years with rather unsatisfactory success. This study examines inflation targeting … 2016. The study unravels evidence of a significant response of inflation and squared inflation to policy interest rates in …
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Crises have cleansing effects: Low-quality firms face greater financial shortfalls and invest less than high-quality firms. Public liquidity support preserves the overall production capacity. However, by dampening the cleansing effects, it distorts the quality distribution and reduces the total...
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Central bank announcements have strong effects on interest rates, but small or even counterintuitive effects on economic expectations. Based on tick-by-tick futures prices on bonds and stock prices, I confirm these seemingly puzzling results for the euro area and provide evidence that they are...
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Central bank announcements move financial markets. The response of inflation and growth expectations, on the other hand …
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