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We offer a novel methodology for assessing the quality of inflation reports. In contrast to the existing literature …, which mostly evaluates the formal quality of these reports, we evaluate their economic content by comparing inflation … coding of inflation reports to describe inflation factors communicated by central banks in real time. Regarding the latter …
Persistent link: https://www.econbiz.de/10013051913
communication affects expectations and, subsequently, behavior in financial markets …
Persistent link: https://www.econbiz.de/10014238784
by the observation that the money at the core of these systems, central bank money, is injected into the economy on terms …
Persistent link: https://www.econbiz.de/10011296085
Persistent link: https://www.econbiz.de/10012319251
The Fed has never admitted targeting stock prices. Yet our empirical analysis, based on a small macro-econometric model of the U.S. economy in the period 1981-2002, shows that the Fed explicitly takes into account stock price variations in its reaction function. Furthermore, our simulation...
Persistent link: https://www.econbiz.de/10013142770
This study reviews the concepts and features of both central bank and private sector money and focuses on them in … selected advanced and emerging economies. As a newly emerged form of private sector money, digital coins (cryptoassets) such as …
Persistent link: https://www.econbiz.de/10012113911
This paper takes an overview of the concepts and features of central bank money and private sector money and focuses on … the actual performance of these types of money in selected advanced and emerging economies. In addition, digital coins … (crypto assets), such as bitcoin, are newly emerged private sector money. Much attention has been given to digital coins …
Persistent link: https://www.econbiz.de/10011975543
Using US data, we estimate optimal policy with a probability below one that the Fed reneges on its commitment ("limited credibility") versus discretionary policy where the Fed reneges on its commitment at all periods with a probability equal to one ("zero credibility"). The transmission...
Persistent link: https://www.econbiz.de/10011695111
We build a model economy in which Fed watching occurs. There is a huge number of blogs, financial letters, and news reporting that talks about what the Federal Reserve is likely to do. We model this behavior by allowing for banks to Fed watch, meaning that the bank will apply a costly...
Persistent link: https://www.econbiz.de/10012950716
The European Central Bank has assigned a special role to money in its two pillar strategy and has received much … criticism for this decision. The case against including money in the central bank's interest rate rule is based on a standard … decades. In this paper, we develop a justification for including money in the interest rate rule by allowing for imperfect …
Persistent link: https://www.econbiz.de/10010298367