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We assume that central banks can control inflation so that inflation rates reflect the preferences of the central bank … background. In a panel data analysis for the euro area and eleven countries since 1973,we explain inflation first by the weights … background, former members of the central bank staff as well as former bankers and businessmen have the strongest inflation …
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In a highly interlinked global economy a key question for policy makers is how foreign shocks and policies transmit to the domestic economy. We develop a semi-structural multi-country model with rich real and financial channels of international shock propagation for the euro area, the US, Japan,...
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Monetary policy increasingly relies on steering market expectations about future policy. This paper identifies a monetary policy news shock based on a VAR model. A monetary news shock is equivalent to new information about the Fed's future monetary policy becoming available today. One example of...
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