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An Onset of Cyclical Growth. Macroeconomic Forecast for 2016-2018

Averkiev, Vladimir - 2017

In Q 3-4 2016, Russia's economy entered the phase of cyclical growth from the lowest point of the business cycle, its typical feature being the unstable movement patterns of the main socioeconomic development indicators. Inflation hit its historic low. The ruble's strengthening boosted the...

Persistent link: https://www.econbiz.de/10012959655

How the Banking System is Creating a Two-way Inflation in an Economy?

Mehedi Nizam, Ahmed - 2018

Here we argue that due to the difference between the real GDP growth rate and nominal deposit rate, a demand pull inflation is induced into the economy. On the other hand, due to the difference between real GDP growth rate and nominal lending rate, a cost push inflation is created. We...

Persistent link: https://www.econbiz.de/10012909274

CBDCs and NIRP : New Tools for Monetary Policy

Berriel, Tiago - 2019

The last decade has witnessed two groundbreaking developments in monetary economics: The growth in digital private currencies and negative interest rate policies (NIRP), leaving the zero lower bound no longer binding. These developments have introduced two parallel discussions surrounding the...

Persistent link: https://www.econbiz.de/10012889308

Inflation Targeting Rules and Seasonality Bias in Inflation Expectations

Stein, Roy - 2015

Inflation expectations estimates are among the most important indicators used, in particular when implementing the Taylor rule. These estimates include primarily (1) break even inflation for the next 12 months, calculated from the prices of CPI (Consumer Price Index)-indexed and unindexed...

Persistent link: https://www.econbiz.de/10013012365

Modelling Yields at the Lower Bound Through Regime Shifts

Hördahl, Peter - 2019

We propose a regime-switching approach to deal with the lower bound on nominal interest rates in dynamic term structure modelling. In the "lower bound regime", the short term rate is expected to remain constant at levels close to the effective lower bound; in the "normal regime", the short rate...

Persistent link: https://www.econbiz.de/10012861844

Optimal Monetary Policy in a Small Open Economy with Financial Frictions

Merola, Rossana - 2016

financial accelerator mechanism is working, a price-level targeting rule dominates. One caveat is that the source of the shock … plays an important role. Once the financial shock is not operative, the gain from a price-level targeting rule decreases …

Persistent link: https://www.econbiz.de/10012991101

Optimal Monetary Policy and Imperfect Financial Markets : A Case for Negative Nominal Interest Rates?

Abo-Zaid, Salem M. - 2016

This paper studies optimal monetary policy in a model with credit frictions and money demand. We show that augmenting a standard New-Keynesian model with money demand and financial frictions generates a mechanism that, in equilibrium, gives rise to optimal negative nominal interest rates. In...

Persistent link: https://www.econbiz.de/10012993909

Managing External Volatility : Policy Frameworks in Non-Reserve Issuing Economies

Poirson, Hélène; Porter, Nathan; Fayad, Ghada; Agur, Itai - 2021

Since the global financial crisis, non-reserve-issuing economies (NREs) have been highly sensitive to episodes of external pressures. With monetary policy independence constrained by this sensitivity, many NREs have utilized other policy instruments. This paper confirms the vulnerability of NREs...

Persistent link: https://www.econbiz.de/10013250074

Optimal Long-Run Inflation with Occasionally-Binding Financial Constraints

Abo-Zaid, Salem M. - 2015

inflation rate is around 1.5% if the economy is hit by a total factor productivity (TFP) shock and nearly 2.5% if the economy is … subject to a markup shock. The shadow value of the collateral constraint is akin to an endogenous cost-push shock. Differently … from usual cost-push shocks, however, this shock is asymmetric as it takes non-negative values only. Since the mean of this …

Persistent link: https://www.econbiz.de/10013036866

F.A. Hayek and His Rational Choice of Monetary Arrangements

Sahoo, Ganeswar - 2013

This paper addresses the perspective of Hayek's doctrine on monetary arrangements in the economy and his favorable argument for an international central bank over national central bank. I also discussed Hayek's view on free banking (i.e. for the free issue of bank notes) that would enable the...

Persistent link: https://www.econbiz.de/10013077505