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€™s inflation-targeting policy and a developed model with the exchange rate taken into account. Based on real-time quarterly …, Sveriges Riksbank, was not merely adjusting its repo rate in response to the changes in expected inflation and output … deviations. An approach that is known as one of a central bank’s classic regulation tools to deal with domestic inflation first …
Persistent link: https://www.econbiz.de/10011205761
The estimation of structural dynamic factor models (DFMs) for large sets of variables is attracting considerable attention. In this paper we briefly review the underlying theory and then compare the impulse response functions resulting from two alternative estimation methods for the DFM....
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While conventional monetary policy maintains its role in counteracting inflation, there are doubts that it is … a role in taming the credit cycle without compromising its effectiveness to control inflation efficiently. Until now …
Persistent link: https://www.econbiz.de/10012545868
The frequencies at which prices and wages are adjusted, interpreted as price and wage flexibility, are key elements in workhorse models used for policy analysis. Yet, there is little evidence regarding the relationship between these two sources of nominal rigidities. Using two large and highly...
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estimation provides substantial evidence that the inflation and output preferences of the Fed have varied through time …
Persistent link: https://www.econbiz.de/10010460499
autoregressive model. In a high inflation regime the standard results from the literature obtain. In a low inflation regime output … shows no significant response to monetary policy while the inflation response is negative. The paper endogenously determines …
Persistent link: https://www.econbiz.de/10010286403
We analyze empirical links between the perceived tail-risk of inflation, the policy rate, longer-term interest rates … always in reaction to Fed announcements; and, (v) our impulse responses demonstrate that odds of extreme inflation outcomes …
Persistent link: https://www.econbiz.de/10012030329