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their lagged values using the Vector Auto-regressive (VAR) analytical technique. The Classical quantity theory of money, the … Cambridge Cash Balanced, the liquidity preference theory and the Monetarists as theoretical frameworks were explored to …
Persistent link: https://www.econbiz.de/10012062559
The role of monetary policy in promoting economic growth remains empirically an open research question. This paper attempts to bridge the knowledge gap by investigating the impact of monetary policy on economic growth in Tanzania during the period from 1975 to 2013, using the autoregressive...
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Long-term fixed-rate mortgage contracts protect households against interest rate risk, yet most countries have … fixation length tracks the life-cycle decline of credit risk in the mortgage market: the loan-to-value (LTV) ratio decreases … and collateral coverage improves over the life of the loan due to principal repayment and house price appreciation. High …
Persistent link: https://www.econbiz.de/10014309040
The majority of the New Keynesian DSGE literature assumes that the macroeconomic effects of monetary policy can be satisfactorily described by an interest rate rule without addressing the details of the money supply. We investigate whether this approach remains valid in the presence of inside...
Persistent link: https://www.econbiz.de/10013175430
. Households trade nominal private debt in equilibrium, with the borrowers being subject to a collateral constraint, which is tied …
Persistent link: https://www.econbiz.de/10011389355
The Taylor (1993) rule for determining interest rates is generalized to account for three additional variables: The money supply, money velocity, and the unemployment rate. Thus, five parameters, i.e. weights assigned to the deviation in the inflation rate, the deviation in real GDP (Gross...
Persistent link: https://www.econbiz.de/10014316675
housing is accepted as collateral. A calibration to the U.S. economy supports the theoretical results and provides novel …
Persistent link: https://www.econbiz.de/10011993690