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Heightened volatility in cross-border capital flows has increased exchange rate volatility across emerging markets as … volatility. This paper explains how the new policy framework adopted by the Central Bank of the Republic of Turkey (CBRT) in the … instruments developed by the CBRT and their contribution to coping with capital flow volatility. In particular, we focus on the …
Persistent link: https://www.econbiz.de/10013049964
, Export and Purchasing Power Parity (PPP)) on Exchange Rate Volatility (USD to INR) in India. To analyze how this variables …
Persistent link: https://www.econbiz.de/10012931463
Persistent link: https://www.econbiz.de/10013121639
The biggest and most well-known unsolved problem in academic finance is famously referred to as the Equity Premium Puzzle. It refers to the unexplained phenomenon that for over 100 years the average return on a well-diversified portfolio of equities has far outperformed that of risk-free,...
Persistent link: https://www.econbiz.de/10012838903
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
This report is one of the first studies discussing monetary base analysis and control model, a concept even today is alive and more developed by, for example, by IMF to use its analysis. The study presents monetary base approach to control of money flows and the links between monetary base,...
Persistent link: https://www.econbiz.de/10012892419
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
We extend a simple Dynamic Stochastic General Equilibrium (DSGE) model with segmented financial markets to include financial repression and examine its impact on the transmission of conventional and unconventional monetary policies. In our model, financial repression arises as the government...
Persistent link: https://www.econbiz.de/10013314664
In this paper I study the effects of monetary policy on economic activity and asset prices in Sweden, separately identifying the effects of a conventional policy change from effects of new information about economic fundamentals. Recent research has shown that high-frequency changes in policy...
Persistent link: https://www.econbiz.de/10012309007
Liquidity traps occur when the natural nominal interest rate becomes negative. In a model with capital price dynamics explicitly considered, we find that shocks in the future can cause current and lasting liquidity traps. We propose that the central bank can prevent or fix liquidity traps by...
Persistent link: https://www.econbiz.de/10014073185