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In this paper we embed the Taylor interest rate rule in a simple macroeconomic model with Calvo contracts. We contrast this with the case in which the interest rate is determined by the conventional LM curve along with a fixed value for the monetary aggregate. We derive conditions under which...
Persistent link: https://www.econbiz.de/10009461225
The paper reviews the policy response of major central banks during the 2007–08 financial market turbulence and suggests that there is scope for convergence among central bank operational frameworks through the adoption of those elements that proved most instrumental in calming markets. These...
Persistent link: https://www.econbiz.de/10005825614
Monetary policy in Yemen is largely rudimentary and ad hoc in nature. The Central Bank of Yemen's (CBY) approach has been based on discretionary targeting of broad money without any clear target to anchor inflation expectations. This paper argues in favor of a new formal monetary policy...
Persistent link: https://www.econbiz.de/10005825743
tend to raise the general price level. In contrast to the accepted view, other prices do not seem to decline to offset the …
Persistent link: https://www.econbiz.de/10005825768
Exchange rate-based inflation stabilization (ERBS) policies are associated with a boom-recession cycle in economic activity and sustained real exchange rate appreciation. A class of models in the literature has explained these empirical regularities with the lack of credibility of the...
Persistent link: https://www.econbiz.de/10005825871
This paper uses a two-sector model to estimate the relationship between prices, money, and the exchange rate in … monetary aggregates, domestic prices, real income, and foreign interest rates. In addition, the error-correction model shows …
Persistent link: https://www.econbiz.de/10005825934
-through to prices, and interest rate policy following, rather than leading, financial market developments. Our estimated monetary …
Persistent link: https://www.econbiz.de/10005825964
factors argued to explain the differences in the trends in core inflation and relative prices in the United Kingdom, the Euro …
Persistent link: https://www.econbiz.de/10005826211
This paper analyses the major changes in textile products, production costs, prices, and market orientations during the … major contributions of this paper, however, also lie in analysing production, product, cost, and prices changes in textiles … Hondschoote sayetterie and Leiden woollen industry, 1376-1570; (4 - 7) Prices and relative values of Ghent woollens: in terms of …
Persistent link: https://www.econbiz.de/10005827229
depopulation will result in falling grain prices and thus in falling rents on grain-producing lands (on land in general) and in … would also have been a product of the fall in the cost of living, chiefly determined by bread-grain prices, whose decline … England, by almost thirty years of high grain prices – high in both nominal and real terms; and that was a principal reason …
Persistent link: https://www.econbiz.de/10005827233