Showing 1 - 10 of 1,388
This paper investigates how and to what extent nonlinearity, including the zero lower bound on the nominal interest rate, affects the estimates of the natural rate of interest in a dynamic stochastic general equilibrium model with sticky prices and wages. We find that the estimated natural rate...
Persistent link: https://www.econbiz.de/10012956545
This paper investigates evidence of a Fisher effect in Nigeria by employing quarterly CPI inflation and Nominal interest rates data. For a more robust result we conducted integration and cointegration tests in order to examine time-series properties of the variables. Using Co-integration and...
Persistent link: https://www.econbiz.de/10011477662
This paper examines the impact of public sector borrowings on prices, interest rates, and output in Nigeria. It utilized a Vector Autoregressive framework, the Granger causality test, impulse response, and variance decomposition of the various innovations to study the impact. It found that shock...
Persistent link: https://www.econbiz.de/10011460388
Article deals with estimating real natural interest rate and exchange rate to construct monetary conditions index suitable for the Czech open economy. Despite unobservable characteristics of underlying interest rates and exchange rate, the importance of reference indicators for monetary policy...
Persistent link: https://www.econbiz.de/10012145739
Following an earlier paper, I investigate an economy where nominal interest rates are rigid, but aggregate prices are not. Though the title exaggerates, interest rates rigidity does account for an uncanny number of stylized facts about inflation. This paper shows that previously shown results...
Persistent link: https://www.econbiz.de/10013005197
I create a model where interest rates are rigid, but aggregate prices are flexible. As a result, changes in real interest rates lead to changes to inflation in the opposite direction. I conclude that this is how credit crunches and monetary tightening reduce inflation. I simulate different...
Persistent link: https://www.econbiz.de/10013006391
Kennedy wants to do justice to the poor. She wants to eliminate interest and inflation rate. This paper proves that her theory is based on four misunderstandings, and that her theory actually results in even higher interest and inflation rate. Kennedy has instead inflicted injustice
Persistent link: https://www.econbiz.de/10013022608
This paper presents a simple Ramsey-type model example where two infinitely-living agents have same utility function except for time preference, and shows that equilibrium is indeterminate that is to be interpreted as being non-existent. The issues regarding New Keynesian transversality...
Persistent link: https://www.econbiz.de/10012982564
This paper analyzes how the different types of inflation uncertainty affect a set of interest rate spreads for the UK. Three types of inflation uncertainty — structural uncertainty, impulse uncertainty, and steady-state inflation uncertainty — are defined and derived by using a time-varying...
Persistent link: https://www.econbiz.de/10012915113
In September the Russian central bank has raised its key interest rate, for the first time since 2014, by 0.25 p.p. to 7.5% p.a. in response to increasing risks of higher inflation, including the Russian ruble devaluation (induced by new sanctions against Russia and by capital outflows from...
Persistent link: https://www.econbiz.de/10012910215