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One of the pioneers of inflation targeting (IT), the Bank of Canada is now considering a possibility of switching to price-level-path targeting (PLPT), where past deviations of inflation from the target would have to be offset in the future, bringing the price level back to a predetermined path....
Persistent link: https://www.econbiz.de/10005769297
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movements in current prices and interest rates that are synchronized across countries even when output is not. Even modest …
Persistent link: https://www.econbiz.de/10005621980
There are two generally accepted ways of plotting the aggregate demand (AD) and aggregate supply (AS) curves in the goods market. One puts the price level on the vertical axis (the P - y approach); the other plots the real interest rate on the vertical axis (the r - y approach). This paper...
Persistent link: https://www.econbiz.de/10005641713
We examine the relationship between prices and interest rates for seven advanced economies in the period up to 1913 …, emphasizing the UK. There is a significant long-run positive relationship between prices and interest rates for the core commodity …
Persistent link: https://www.econbiz.de/10010778780
. A serious problem is what index to choose among the national income deflator, wholesale prices, the cost of living, with … bubbles in asset prices, or recovery from financial crises. If so, the question of central bank weapons remains: monetary …
Persistent link: https://www.econbiz.de/10010658829
output and inflation generate movements in current prices and interest rates that are synchronized across countries even when …
Persistent link: https://www.econbiz.de/10009144343
output and inflation generate movements in current prices and interest rates that are synchronized across countries even when …
Persistent link: https://www.econbiz.de/10008871011
Utilizing the Consumer Expenditure Survey and state-level variation in taxes, this study finds that prices for most … models of new cars shift by more than the amount of a sales tax. The evidence of an overshifting of prices offers support for …-tax interest rate have offsetting effects on new car prices; a one percentage point increase in the after-tax real interest rate …
Persistent link: https://www.econbiz.de/10005393653