Recent studies show that the Taylor rule possesses desirable properties in terms of generating determinacy and E-stability of rational expectations equilibria under sticky prices. This paper examines whether this policy rule retains these properties within a discrete-time...

Using a model of island economy where financial markets aggregate dispersed information of the public, we analyze how two-way communication between the central bank and the public affects inflation dynamics. When inflation target is observable and credible to the public, markets provide the bank...

To what extent did the Bank of Japan's liquidity provisions reduce the premium on money market rates over the year-ends in Japan? To answer this question, we propose a simple structural model that illustrates the year-end operations and the year-end interbank money markets. Based on the...

Standard theoretical models predict that higher inflation expectations generate greater current consumer spending at the zero lower bound of interest rates. However, a recent empirical study using US micro data finds negative results for this relationship. We use micro data for Japan, which has...

This paper structurally investigates the changes in the Federal Reserve's communication strategy during the 1990s by analyzing anticipated and unanticipated disturbances to a Taylor rule. The anticipated monetary policy disturbances are identified by estimating a medium-scale dynamic stochastic...

We analyze the effectiveness of monetary policy rules in the presence of the zero lower bound on nominal interest rates, using stochastic simulations. Specifically, we assume a small structural model composed of the IS and AS curves with both forward-looking and backward-looking agents, and...

Bu çalışma para politikaları kararlarına ilişkin beklentilerindeki bir değişimin, finansal yatırım araçlarının fiyatları üzerindeki etkisini ve finansal yatırım araçları arasındaki etkileşimi incelemektedir. Çalışma, para politikası beklenti şokları ile finansal...

Friedman (1984), parasal büyümedeki değişkenliklerin paranın gelir dolanım hızında düşüşe yol açabileceğini ileri sürmüştür. Para otoritesi, para arzını kısa süre içerisinde arttırdığında para arzının oynaklığını arttırmakta ve buda belirsizliğe neden olarak...

This study investigates the dynamics of inflation for Turkish economy from 1990 to until 2013 under the New Keynesian Philips Curve framework by using the non-causal time series methodology developed by Lanne and Saikkonen (2011) and Lanne and Luoto (2013). There is a vigorous ongoing debate on...

In this paper, we investigate the asymmetric effect of exchange rate movements on prices in both expansion and recession cycles for the inflation targeting (IT) period in Turkey, from 2002:M1 to 2012:M10, by using a co-integrating non-linear auto regression distributed lag (NARDL) model. This...