Similar Search Results

How useful are simple rules for monetary policy? : the Swedish experience

Berg, Claes; Jansson, Per; Vredin, Anders - 2004

Monetary policy is often analysed in terms of simple rules. Such rules may be useful for many purposes, even when they do not describe the actual monetary policy strategy exactly. This paper compares monetary policy in Sweden during the inflation-targeting regime 19932002 with the policies...

Persistent link: https://www.econbiz.de/10011583820

Dealing with a liquidity trap when government debt matters : optimal time-consistent monetary and fiscal policy

Burgert, Matthias; Schmidt, Sebastian - 2013

How does the need to preserve government debt sustainability affect the optimal monetary and fiscal policy response to a liquidity trap? To provide an answer, we employ a small stochastic New Keynesian model with a zero bound on nominal interest rates and characterize optimal time-consistent...

Persistent link: https://www.econbiz.de/10010400894

Uncertain Potential Output: Implications for Monetary Policy.

Ehrmann, M.; Smets, F. - Quebec a Montreal - Recherche en gestion - 2001

This paper uses a small, calibrated forward-looking model of the euro-area economy to investigate the implications of incomplete information about potential output for the conduct and the design of monetary policy.

Persistent link: https://www.econbiz.de/10005779726

Threshold-Based Forward Guidance : Hedging the Zero Bound

Koerber, Lena - 2015

Motivated by policies implemented by some central banks in response to the financial crisis, we use a simple New Keynesian model to study a particular form of forward guidance. We assume that the policy maker makes a state-contingent commitment to hold the policy rate at the zero lower bound...

Persistent link: https://www.econbiz.de/10013013019

Sectoral shocks and monetary policy in the United Kingdom

Dixon, Huw; Franklin, Jeremy; Millard, Stephen Patrick - 2021

In this paper, we examine the extent to which monetary policy should respond to movements in sectoral inflation rates. To do this we construct a Generalised Taylor model that takes specific account of the sectoral make-up of the consumer price index (CPI). We calibrate the model for each sector...

Persistent link: https://www.econbiz.de/10012591789

Sectoral Shocks and Monetary Policy in the United Kingdom

Dixon, Huw David - 2014

In this paper, we use an open economy model of the United Kingdom to examine the extent to which monetary policy should respond to movements in sectoral inflation rates. To do this we construct a Generalised Taylor model that takes specific account of the sectoral make up of the consumer price...

Persistent link: https://www.econbiz.de/10013055015

On the Persistence of Low Long-Term Inflation Expectations

Carr, Douglas - 2022

The paper examines a wide variety of models forecasting inflation, consumer survey, professional survey, judgmental, market-derived, and monetary model. Despite differences between forecasting approaches, models produced generally similar results. Long-term forecasts were more accurate than...

Persistent link: https://www.econbiz.de/10013288939

Contemporary Inflation Surprises and Financial Stability

Carr, Douglas - 2022

and forecasting and expectations shortfalls.With the development of inelastic inflation response in the mid-1990’s, risk … income, while, previously, the reverse was true.Another risk is the mismatch between monetary policy, with lags over a decade … long, and recent fiscal inflation with much shorter impact. Recession risk increases with mismatched monetary response to …

Persistent link: https://www.econbiz.de/10013404759

How Elastic and Predictable Money Should Be : Flexible Monetary Policy Rules from the Great Moderation to the New Normal Times (1993-2023)

Masciandaro, Donato - 2023

The never ending debate on the optimal money elasticity and predictability, coupled with the recent wishes of the major central banks to normalize monetary policy, as well as to revise their best practices, motivate this paper. Its aim is to offer a review of the evolution of the modern concept...

Persistent link: https://www.econbiz.de/10014257290

Sticky wages, incomplete pass-through and inflation targeting : what is the right index to target?

Abo-Zaid, Salem M. - 2009

This paper studies monetary policy rules in a small open economy with Inflation Targeting, incomplete pass-through and rigid nominal wages. The paper shows that, when nominal wages are fully flexible and pass-through is low to moderate, the monetary authority should target the consumer price...

Persistent link: https://www.econbiz.de/10011523924