The nature of expectations matters when conducting monetary policy. Models with a learning process can exhibit very different properties from models with other types of expectations rules. This paper draws on the work of Orphanides and Williams (2002), extending it to allow for the possibility...

This paper documents the Reserve Bank of New Zealand's current approach to dealing with structural change, an important feature of New Zealand's recent macroeconomic history after the profound economic reforms undergone in the past twenty years. Traditional estimated macroeconomic models of New...

This paper reviews the literature on applications of state- space modelling to macroeconomic questions, with four examples related to modelling unobserved trends, transition across different steady states, expectations formation and forecasting/data revision issues. Due to the flexibility of the...

The interest rate which corresponds to neutral monetary policy settings in New Zealand appears to have trended downwards since at least the stabilisation of inflation in 1992. We present several alternative estimates of a time varying neutral real interest rate (NRR) in state space models, which...

There is little evidence on the efficiency of the early stage of the capital market in transition countries, although market structure developments and the learning process could define the framework for efficient markets. The article tries to find out whether financial markets are efficient in...

This article presents a macro-econometric model for Estonia currently developed at the Bank of Estonia. It is based on a basic macro-economic framework that integrates both supply and demand side components. With this model we analyse the policy that should be implemented to maintain sustainable...

Based on stylized facts on South Africa, this article provides a simple theoretical framework to analyze the relations between reducing working time, unemployment, education and growth. It is flexible enough to provide some main macro-economic implications of work sharing, especially in terms of...

[fre] Cet article présente un prolongement de l'analyse de Glomm et Ravikumar [1992]. La comparaison des systèmes privés et publics d'éducation est reliée à une étude de l'optimum centralement planifié. D'autres modes d'action que le choix d'un système éducatif sont envisagés,...