Inflation Nominal Interest Rates And The Variability Of Output

Author : Mr.Bankim Chadha,Daniel Tsiddon
Publisher : International Monetary Fund
Page : 36 pages
File Size : 52,5 Mb
Release : 1996-10-01
Category : Business & Economics
ISBN : 9781451853162

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Inflation, Nominal Interest Rates, and the Variability of Output by Mr.Bankim Chadha,Daniel Tsiddon Pdf

This paper examines the distribution of output around capacity when money demand is a nonlinear function of the nominal interest rate such that nominal interest rates cannot become negative. When fluctuations in output result primarily from disturbances to the money market, the variance of output is shown to be an increasing function of the trend inflation rate. When they result from disturbances to the goods market, the variance of output is a decreasing function of the trend inflation rate. When both disturbances are significant, there exists, in general, a critical non-zero trend inflation rate that minimizes the variance of output.

Author : T. C. Y. Kam,Guay C. Lim
Publisher : Unknown
Page : 25 pages
File Size : 43,5 Mb
Release : 2001
Category : Inflation (Finance)
ISBN : 073402472X

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Interest Rate Smoothing and Inflation-output Variability in a Small Open Ended Economy by T. C. Y. Kam,Guay C. Lim Pdf

Author : Richard T. Froyen,Roger N. Waud
Publisher : Unknown
Page : 78 pages
File Size : 42,7 Mb
Release : 1983
Category : Demand (Economic theory)
ISBN : IND:39000004106113

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Demand Variability, Supply Shocks and the Output-inflation Tradeoff by Richard T. Froyen,Roger N. Waud Pdf

This paper examines the shift in the relation between the inflation rate and the rate of growth of real output which has occurred in the United States over the past three decades, and attempts to assess the relative importance of three possible lines of explanation: a) the new classical view of the output-inflation tradeoff, initially specified by Lucas;b) the effect of supply-side shocks, such as energy prices; c) the effect of inflation variability on the natural rate of real output, as hypothesized by Milton Friedman. The paper concludes that b) and c) seem to have played a significant role in the observed shift from a positive to a negative correlation between the rate of inflation and the rate of real output growth,but that a) did not.

Author : Allan Dizioli,Jochen M. Schmittmann
Publisher : International Monetary Fund
Page : 25 pages
File Size : 46,6 Mb
Release : 2015-12-23
Category : Business & Economics
ISBN : 9781513524764

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A Macro-Model Approach to Monetary Policy Analysis and Forecasting for Vietnam by Allan Dizioli,Jochen M. Schmittmann Pdf

The paper develops a small New-Keynesian FPAS model for Vietnam. The model closely matches actual data from 2000-2014. We derive an optimal monetary policy rule that minimizes variability of output, inflation, and the exchange rate. Compared to the baseline model, the optimal rule places a larger weight on output stabilization as the intermediate target to achieve inflation stability, while allowing greater exchange rate flexibility. We analyze the dynamics of key macro variables under various shocks including external and domestic demand shocks and a lift-off of U.S. interest rates. We find that the optimal monetary policy rule delivers greater macroeconomic stability for Vietnam under the shock scenarios.

Author : Reserve Bank of New Zealand
Publisher : Unknown
Page : 32 pages
File Size : 40,8 Mb
Release : 1999
Category : Foreign exchange rates
ISBN : UCSD:31822028172104

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Exchange Rate Effects and Inflation Targeting in a Small Open Economy by Reserve Bank of New Zealand Pdf

Author : Alberto Alesina,Francesco Giavazzi
Publisher : University of Chicago Press
Page : 624 pages
File Size : 54,7 Mb
Release : 2010-04-15
Category : Business & Economics
ISBN : 9780226012858

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Europe and the Euro by Alberto Alesina,Francesco Giavazzi Pdf

It is rare for countries to give up their currencies and thus their ability to influence such critical aspects of their economies as interest and exchange rates. Yet ten years ago a number of European countries did exactly that when they adopted the euro. Despite some dissent, there were a number of arguments in favor of this policy change: it would facilitate exchange of goods, money, and people by decreasing costs; it would increase trade; and it would enhance efficiency and competitiveness at the international level. A decade is an ideal time frame over which to evaluate the success of the euro and whether it has lived up to expectations. To that aim, Europe and the Euro looks at a number of important issues, including the effects of the euro on reform of goods and labor markets; its influence on business cycles and trade among members; and whether the single currency has induced convergence or divergence in the economic performance of member countries. While adoption of the euro may not have met the expectations of its most optimistic proponents, the benefits have been many, and there is reason to believe that the euro is robust enough to survive recent economic shocks. This volume is an essential reference on the first ten years of the euro and the workings of a monetary union.

Author : Dora M. Iakova
Publisher : International Monetary Fund
Page : 26 pages
File Size : 40,6 Mb
Release : 2007-04
Category : Business & Economics
ISBN : UCSD:31822034594101

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Flattening of the Phillips Curve by Dora M. Iakova Pdf

Over the past decade, inflation has become less responsive to domestic demand pressures in many industrial countries. This development has been attributed, in part, to globalization forces. A small macroeconomic model, estimated on UK data using Bayesian estimation, is used to analyze the monetary policy implications of this structural change. The focus is on the implications of a globalization-related flattening of the Phillips curve for the trade-off between inflation and output gap variability and for the efficient monetary policy response rule.

Author : Juan José Dolado,Francisco Javier Ruge-Murcia,Ramón Mariá-Dolores
Publisher : Centre interuniversitaire de recherche en économie quantitative
Page : 40 pages
File Size : 52,7 Mb
Release : 2002
Category : Econometrics
ISBN : UVA:X004656365

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Non-linear Monetary Policy Rules by Juan José Dolado,Francisco Javier Ruge-Murcia,Ramón Mariá-Dolores Pdf

Author : Charles Freedman,Mr.Douglas Laxton
Publisher : International Monetary Fund
Page : 27 pages
File Size : 41,8 Mb
Release : 2009-04-01
Category : Business & Economics
ISBN : 9781451872330

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Why Inflation Targeting? by Charles Freedman,Mr.Douglas Laxton Pdf

This is the second chapter of a forthcoming monograph entitled "On Implementing Full-Fledged Inflation-Targeting Regimes: Saying What You Do and Doing What You Say." We begin by discussing the costs of inflation, including their role in generating boom-bust cycles. Following a general discussion of the need for a nominal anchor, we describe a specific type of monetary anchor, the inflation-targeting regime, and its two key intellectual roots-the absence of long-run trade-offs and the time-inconsistency problem. We conclude by providing a brief introduction to the way in which inflation targeting works.

Author : Anonim
Publisher : Unknown
Page : 32 pages
File Size : 48,8 Mb
Release : 2010
Category : Banks and banking, Central
ISBN : IND:30000111483016

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A Model for Full-fledged Inflation Targeting and Application to Ghana by Anonim Pdf

A model in which monetary policy pursues full-fledged inflation targeting adapts well to Ghana. Model features include: endogenous policy credibility; non-linearities in the inflation process; and a policy loss function that aims to minimize the variability of output and the interest rate, as well as deviations of inflation from the long-term low-inflation target. The optimal approach from initial high inflation to the ultimate target is gradual; and transitional inflation-reduction objectives are flexible. Over time, as policy earns credibility, expectations of inflation converge towards the long-run target, the output-inflation variability tradeoff improves, and optimal policy responses to shocks moderate.

Author : Jagdish Handa
Publisher : Routledge
Page : 785 pages
File Size : 46,8 Mb
Release : 2002-11-01
Category : Business & Economics
ISBN : 9781134638093

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Monetary Economics by Jagdish Handa Pdf

A comprehensive overview of advanced monetary economics, integrating the presentation of monetary theory with empirical formulations and their empirical tests. Unlike most texts this book brings together in a single unified source the core areas of monetary economics. Key features include: * cross-country comparison of central banking in the US, UK and developing countries * theories and empirical studies on money demand, including precautionary and buffer stock models and monetary aggregation * detailed comparison of Keynesian and modern classical macroeconomic theoretical and policy models * a focus on the role of money and financial institutions and growth.

Author : Lauren C. Williams
Publisher : Nova Publishers
Page : 182 pages
File Size : 43,6 Mb
Release : 2006
Category : Business & Economics
ISBN : 1594546673

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Monetary Policy and Issues by Lauren C. Williams Pdf

In the 1970's, many countries were plagued by persistently high inflation rates, which were thought to cause a significant loss in economic efficiency. Since persistent inflation is considered to be ultimately the result of monetary policy, many countries in the 1990s sought institutional reforms to their central banks to prevent a return to the 1970s experience. A popular reform was to move from giving central banks multiple policy goals to a single mandate of price stability. The single mandate was accompanied by the introduction of an inflation target, in which central banks aim to keep inflation within a pre-defined numerical range. The logic behind these reforms was a belief among proponents that it would remove the political temptation to 'pump up' the economy in the short run at the expense of long-run price stability, and a belief that 'fine tuning' monetary policy in response to every change in economic conditions, was of little value. This book develops quantitative measurements to analyse the success of inflation targeting abroad by comparing both the performance of targeters to non-targeters and the performance of countries before and after targeting was adopted.

Author : Pierre L. Siklos,Martin T. Bohl,Mark E. Wohar
Publisher : Cambridge University Press
Page : 416 pages
File Size : 46,7 Mb
Release : 2010-04-12
Category : Business & Economics
ISBN : 9781139488440

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Challenges in Central Banking by Pierre L. Siklos,Martin T. Bohl,Mark E. Wohar Pdf

Changes in the field of central banking over the past two decades have been nothing short of dramatic. They include the importance of central bank autonomy, the desirability of low and stable inflation, and the vital role played by how central banks communicate their views and intentions to the markets and the public more generally. There remains considerable diversity nevertheless in the institutional framework affecting central banks, the manner in which the stance of monetary policy is determined and assessed, and the forces that dictate the conduct of monetary policy more generally. The global financial crisis, which began in the United States in 2007, only serves to highlight further the importance of central bank policies. The aim of this volume is to take stock of where we are in the realm of the practice of central banking and considers some of the implications arising from the ongoing crisis.

Author : Claude Diebolt,Catherine Kyrtsou
Publisher : Springer Science & Business Media
Page : 244 pages
File Size : 53,7 Mb
Release : 2005-11-21
Category : Business & Economics
ISBN : 9783540285564

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New Trends in Macroeconomics by Claude Diebolt,Catherine Kyrtsou Pdf

This text provides a new approach to the subject, including a comprehensive survey of novel theoretical approaches, methods, and models used in macroeconomics and macroeconometrics. The book gives extensive insight into economic policy, incorporates a strong international perspective, and offers a broad historical perspective.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 37 pages
File Size : 53,7 Mb
Release : 2007-03-13
Category : Business & Economics
ISBN : 9781452750859

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United Kingdom by International Monetary Fund Pdf

This Selected Issues paper analyzes the impact of globalization inflation and relative prices over the last decade in the United Kingdom. The IMF’s Global Economy Model is used to estimate the relative importance of the various factors argued to have influenced the evolution of inflation and relative prices over this period. The key result is the significantly different impact of the shock on relative prices in the United Kingdom compared with the United States and the Euro area. The paper also explores the likely evolution of the economy after a rise in immigration.