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This chapter aims to provide a hands-on approach to New Keynesian models and their uses for macroeconomic policy analysis. It starts by reviewing the origins of the New Keynesian approach, the key model ingredients and representative models. Building blocks of current-generation dynamic...
Persistent link: https://www.econbiz.de/10014025269
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Existing measures of core inflation ignore a part of ‘should be’ the core inflation. Exclusion based measures ‘exclude …’ a part of persistent inflation inherently existing in the excluded part whereas filter based measures ‘filter-out’ the … inflation – noise free inflation or denoised inflation. As against considering only trend to define core inflation, this study …
Persistent link: https://www.econbiz.de/10012305830
This chapter examines the concept of inflation persistence in macroeconomic theory. It begins by defining persistence … persistence from the literature on imperfect information models, learning models, and so-called “trend inflation models …
Persistent link: https://www.econbiz.de/10014025671
This study examined the causal relationship between inflation and economic growth as well as estimating threshold and … forecasting of inflation in Nigeria for the period of 1961 { 2016. The study employed Granger causality test, Au- toregressive … (VAR) models. Granger causality test result showed that inflation does not granger cause economic growth and neither does …
Persistent link: https://www.econbiz.de/10011922677
The existence of linkages between the agricultural sector and the rest of the economy points to the specificity of that sector and justifies why we can conceive of a macroeconomics of agriculture . The primary sector is characterized by product homogeneity, a pre-condition for the absence of...
Persistent link: https://www.econbiz.de/10014024103
long run Phillips curve recorded -0.75 in Sweden and -0.23 in the United States. While the average inflation rate in the … United States was very close to its targeted level, the average inflation rate in Sweden was 0.6 per- centage points below … its targeted level over the sample period. The deviation of inflation rate from its targeted level in Sweden resulted in …
Persistent link: https://www.econbiz.de/10013179358
The objective of this paper was to analyse the relationship between inflation and economic growth in Burundi and to … determine whether there is an inflation threshold or not to allow monetary authority to adopt the optimal policies to deal with … between inflation and economic growth. The results showed a negative and significant relationship in the short run between …
Persistent link: https://www.econbiz.de/10014500848
prices: inflation and interest rates. Disagreement about GDP growth intensifies strongly during recessions. Disagreement … suggest that credible monetary policy contributes to anchoring of expectations about inflation and interest rates …
Persistent link: https://www.econbiz.de/10011009937
In an inflation targeting regime, the best possible knowledge of demand-side inflationary pressure is of priority …
Persistent link: https://www.econbiz.de/10010569803