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Inflation Persistence, Monetary Regimes and Credibility : A Long-term Perspective

Pratap, Bhanu; Singh, Swati; Kurien, Ashwin Thomas - 2021

influence on inflation persistence by its credibility and responses in the face of inflationary shocks. In this study, we use a … regimes. Further, we show that credibility of the monetary regime significantly influences inflation persistence observed … under the regime, such that higher (lower) regime credibility leads to lower (higher) inflation persistence. Finally, we …

Persistent link: https://www.econbiz.de/10013218240

Disagreement in expectations and the credibility of monetary authorities in the Brazilian inflation targeting regime

Vereda, Luciano; Curi, Alexandre - In: Economia : revista da ANPEC 17 (2016) 1, pp. 56-76

investigates the driving factors of disagreement, paying special attention to the influence of monetary authorities' credibility …' credibility; this relationship is positive in the case of the growth rate of industrial production. …

Persistent link: https://www.econbiz.de/10011865624

Sacrifice Ratios and Monetary Policy Credibility : Do Smaller Budget Deficits, Inflation-Indexed Debt, and Inflation Targets Lower Disinflation Costs?

Durham, J. Benson - 2002

does not satisfactorily examine key fiscal and monetary policy practices that arguably affect policymaking credibility … addenda, the results generally suggest that credibility proxies are largely sensitive to research design. However, some data …

Persistent link: https://www.econbiz.de/10014122385

Monetary Policy Regimes and Beliefs

Andolfatto, David; Gomme, Paul - 1997

Recent monetary history has been characterized by monetary authorities that appear to shift periodically between distinct policy regimes associated with higher or lower average rates of money creation. As policy regimes are not directly observable and as the rate of monetary expansion varies for...

Persistent link: https://www.econbiz.de/10014122723

Credible Monetary Policy When Output is Persistent : Exchange Rate and Nominal Income Targeting

Bae, Sang-Kun; Ratti, Ronald A. - 2004

Distortions introduced by targeting nominal income growth, or an exchange rate peg, in the trade-off between inflation and output in the stabilization of shocks to supply and terms of trade cannot be eliminated simultaneously. If supply shocks are optimally stabilized, targeting an exchange rate...

Persistent link: https://www.econbiz.de/10014074036

On the Negative Social Value of Central Banks' Knowledge Transparency

Gersbach, Hans - 2014

We examine to what extent central banks should release their internal assessments concerning the links between money growth and future inflation, and between employment and inflation. We show that the social value of transparency concerning real shocks is negative since the disclosure of the...

Persistent link: https://www.econbiz.de/10014207141

Dynamic Fiscal Limits and Monetary-Fiscal Policy Interactions

Battistini, Niccolò - 2019

This paper analyzes the impact of monetary policy on public debt sustainability through the lens of a general equilibrium model with fiscal limits. We find that the mere possibility of a binding ZLB may have detrimental effects on debt sustainability, as a kink in the Laffer curve induces a...

Persistent link: https://www.econbiz.de/10012872107

Inflation Conservatism and Monetary-Fiscal Policy Interactions

Blake, Andrew P.; Kirsanova, Tatiana - 2010

This paper investigates the stabilization bias that arises in a model of monetary and fiscal policy stabilization of the economy, when assuming that the monetary authority put higher weight on inflation stabilization than society. We demonstrate that inflation-conservatism unambiguously leads to...

Persistent link: https://www.econbiz.de/10014220689

Learning and the Welfare Implications of Changing Inflation Targets

Moran, Kevin - 2005

This paper computes the welfare consequences, for a representative agent, of a shift in the inflation target of monetary authorities. The welfare computations are conducted first by comparing the two steady states that the different inflation targets entail, and next by accounting for the...

Persistent link: https://www.econbiz.de/10014065040

How Important is Precommitment for Monetary Policy?

Dennis, Richard; Söderström, Ulf - 2005

Economic outcomes in dynamic economies with forward-looking agents depend crucially on whether or not the central bank can precommit, even in the absence of the traditional "inflation bias." This paper quantifies the welfare differential between precommitment and discretionary policy in both a...

Persistent link: https://www.econbiz.de/10014065270