Download or read book Essays on International Currency Trend Inflation and Policy Uncertainty written by Hong Zhao and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "This thesis addresses questions concerning international currency, trend inflation, and policy uncertainty. The first essay studies the impact of trend inflation on the share of the leading international currency in global payments. By constructing a three-country model with trend inflation in which the share of the leading international currency is endogenous, we find that the position of the leading international currency persists even if the inflation rate in its own country increases from $0$ to $8$ percent. Moreover, incorporation of trend inflation in the open-economy model reveals that domestic trend inflation amplifies the spillover effects of a domestic technology shock on foreign countries. Trend inflation in foreign countries reinforces these spillover effects through the effect of price dispersion. To explore the costs and benefits of having an international currency, the second essay constructs a two-country model in which the home country provides the international currency and the foreign country uses it to purchase imports. Implications of this model are derived under two pricing assumptions. One, where the prices of all traded goods are set in the domestic currency and the other, where the prices of all traded goods are set in the international currency. We identify new sources of benefits and costs of having an international currency. The third essay investigates how monetary policy uncertainty affects macroeconomy under financial frictions. We apply a New-Keynesian model with a financial accelerator mechanism and introduce the monetary policy uncertainty as a mean preserving shock to the variance of the level interest rate shock. Results show a negative impact of policy uncertainty on macroeconomy. Financial accelerator mechanism amplifies this adverse effects. Furthermore, among the productivity uncertainty and risk shock, policy uncertainty induces the strongest output responses. " --

Download or read book Essays on Trend Inflation Nominal Rigidity and Optimal Monetary Policy written by Xuanyang Zhang and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Trend Inflation written by Sergio Afonso Lago Alves and published by . This book was released on 2011 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Inflation written by Thomas M. Humphrey and published by . This book was released on 1986 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Macroeconomic Effects of Non zero Trend Inflation written by Jean Blaise Nlemfu Mukoko and published by . This book was released on 2021 with total page 209 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Honour of Fabio Canova written by Juan J. Dolado and published by Emerald Group Publishing. This book was released on 2022-09-16 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: Both parts of Volume 44 of Advances in Econometrics pay tribute to Fabio Canova for his major contributions to economics over the last four decades.

Download or read book Productivity Growth Inflation and Unemployment written by Robert James Gordon and published by Cambridge University Press. This book was released on 2004 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt: Publisher Description

Download or read book The Great Inflation written by Michael D. Bordo and published by University of Chicago Press. This book was released on 2013-06-28 with total page 545 pages. Available in PDF, EPUB and Kindle. Book excerpt: Controlling inflation is among the most important objectives of economic policy. By maintaining price stability, policy makers are able to reduce uncertainty, improve price-monitoring mechanisms, and facilitate more efficient planning and allocation of resources, thereby raising productivity. This volume focuses on understanding the causes of the Great Inflation of the 1970s and ’80s, which saw rising inflation in many nations, and which propelled interest rates across the developing world into the double digits. In the decades since, the immediate cause of the period’s rise in inflation has been the subject of considerable debate. Among the areas of contention are the role of monetary policy in driving inflation and the implications this had both for policy design and for evaluating the performance of those who set the policy. Here, contributors map monetary policy from the 1960s to the present, shedding light on the ways in which the lessons of the Great Inflation were absorbed and applied to today’s global and increasingly complex economic environment.

Download or read book The Preparation of Monetary Policy written by J.M. Berk and published by Springer Science & Business Media. This book was released on 2013-03-14 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt: Standard macroeconomic monographs often discuss the mechanism of monetary transmission, usually ending by highlighting the complexities and uncertainties involved in this mechanism. Conversely, The Preparation of Monetary Policy takes these uncertainties as a starting point, analytically investigating their nature and spelling out their consequences for the monetary policy maker. The second innovative aspect of this book is its focus on policy preparation instead of well-covered topics such as monetary policy strategy, tactics, and implementation. Thirdly, a general, multi-model framework for preparing monetary policy is proposed, which is illustrated by case studies stressing the role of international economic linkages and of expectations. Written in a self-contained fashion, these case studies are of interest by themselves. The book is written for an audience that is interested in the art and science of monetary policy making, which includes central bankers, academics, and (graduate) students in the field of monetary economics, macroeconomics, international economics and finance.

Download or read book The Illusion of Wage and Price Control written by David E. W. Laidler and published by . This book was released on 1976 with total page 278 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Phillips Curve written by James T. Smith (III) and published by . This book was released on 2019 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines empirical aspects of the Phillips curve and their consequences for macroeconomic theory. There are aspects of the inflation/unemployment relationship besides monetary policy and sticky prices which merit attention.Chapter 2 experiments with different measures of inflation expectations in European data. It shows that the measure of expectations affects the estimated effect of unemployment on inflation. The policy and theoretical implication is that a measure of trend inflation is needed as a substitute for inflation expectations. Chapter 3 studies American metropolitan data after 1990 to take advantage of the low and stable inflation environment. That chapter concludes that shelter inflation is more correlated with unemployment than other components of the Consumer Price Index, and that more constrained housing markets have steeper slope estimates. These results suggest that trend inflation should be measured with core inflation excluding shelter. Chapter 4 deals with the theoretical implications of an empirical Phillips curve that reflects rising real costs of shelter. The differing slopes of the empirical shelter and non-shelter Phillips curves can be explained with a supply and demand model, but to explain the timing of changes one needs non-homothetic expenditures. The essay presents data supporting non-homothetic expenditure shares and a model for generating the patterns seen in the data. The non-homothetic demand model allows demand for one good to increase while the demand for the other remains stable. This explains the differing Phillips curve slopes observed in the data.

Download or read book Essays on the Dynamics of Inflation Expectations written by Sebastian Rast and published by . This book was released on 2022 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis investigates the dynamics of inflation expectations with a particular focus on survey data. It aims to further the understanding of what drives inflation expectations and what are the implications of changes in inflation expectations for economic choices. The first chapter examines to what extent monetary policy moves household inflation expectations. More specifically, I study the effect of different types of monetary policy announcements on household inflation expectations based on micro data from a survey of German households. As unique feature, interviews of the survey were conducted both shortly before and after monetary policy events. This timing provides a natural experiment to identify the immediate effects of policy announcements on household inflation expectations. In contrast to most existing studies, the availability of the survey over a period of 15 years also allows me to exploit the time-series dimension to estimate how policy announcements affect household inflation expectations over the medium-term. I find that policy rate announcements lead to quick and significant adjustments in household inflation expectations with the effect peaking after half a year. Announcements about forward guidance and quantitative easing, on the other hand, have only small and delayed effects. My results suggest that monetary policy announcements can influence household expectations but further improvements in communication seem to be necessary to reach the general public more effectively. In particular, in an environment where policy rates are constrained by the effective lower bound, it may be very hard for central banks to influence household expectations. In the second chapter, joint with Evi Pappa and Alejandro Vicondoa, we focus on expectations about inflation in the medium to long run and study the implications of changes in these expectations for households' economic choices. We identify in a SVAR shocks that best explain future movements in different measures of underlying inflation at a five-year horizon and label them as news augmented shocks to underlying inflation. Independently of the measure used, such shocks raise the nominal rate and inflation persistently, while they induce mild and short-lived increases in economic activity. The extracted inflation shocks have differential distributional effects. They increase significantly and persistently the consumption of mortgagors and homeowners. Differently from the traditional monetary policy disturbances, news augmented shocks to underlying inflation induce a positive wealth effect for mortgagors and homeowners, driven by a reduction in the real mortgage payments and a persistent increase in real house prices that they induce. The third chapter, joint with Jonas Fisher and Leonardo Melosi, is also about long-run inflation expectations but in this case the focus is on professional forecasters. We use panel data from the U.S. Survey of Professional Forecasters to estimate a model of individual forecaster behavior in an environment where inflation follows a trend-cycle time series process. Our model allows us to estimate the sensitivity of forecasters' long-run expectations to incoming inflation and news about future inflation, and measure the coordination of beliefs about future inflation. We use our model of individual forecasters to study average long-run inflation expectations. Short term changes in inflation have small effects on average expectations; the sensitivity to news is over twice as large, but is still relatively small. These findings provide a partial explanation for why the anchoring and subsequent de-anchoring of average inflation expectations over 1991 to 2020 were such long-lasting episodes. Our model suggests coordination of beliefs also played a role, slowing down but not preventing the pull on average expectations from inflation running persistently below target. We apply our model to the case of a U.S. central banker setting policy in September 2021. Our results suggest the high inflation readings of mid-2021 would have to be followed by overshooting of the Fed's target generally at the high end of the Fed's Summary of Economic Projections to re-anchor long term expectations at their pre-Great Recession level.

Download or read book Essays on Money and Inflation written by David E. W. Laidler and published by Chicago : University of Chicago Press. This book was released on 1975 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Monetary Policy Rules and Inflation Dynamics written by Saad Ahmad and published by . This book was released on 2016 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: There has been a growing trend to utilize nonlinear models to analyze key issues in monetary policy and international macroeconomics. Using traditional linear models to understand nonlinear relationships can often lead to inaccurate inference and erroneous policy recommendations. The three essays in this dissertation explore nonlinearity in the Federal Reserve’s policy response as well as between a country’s inflation dynamics and integration in the global economy. My aim in accounting for potential nonlinearity is to get a better understanding of the policy makers’ opportunistic approach to monetary policy and evaluate the inflation globalization hypothesis, which basically predicts that global factors will eventually replace the domestic determinants of inflation. In the first essay I develop abroad nonlinear Taylor rule framework, in conjunction with real time data, to examine the Fed’s policy response during the Great Moderation. My flexible framework is also able to convincingly show that the Fed departed from the Taylor rule during key periods in the Great Moderation as well as in the recent financial crisis. The second essay uses a threshold methodology to investigate the importance of nonlinear effects in the analysis of the inflation globalization hypothesis. Finally the third essay investigates the relationship between inflation and globalization, under an open-economy Phillips Curve framework, for a panel of OECD countries with a dynamic panel GMM methodology. Contrary to most of the previous literature, which ignores such nonlinearities, my new approach provides some interesting empirical evidence supportive of the effect globalization has on a country’s inflation dynamics.

Download or read book Essays on Inflation Dynamics written by Olivier Coibion and published by . This book was released on 2007 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Exchange Rate and Inflation Dynamics written by Noor Mohammad Uddin and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "This thesis explores the relationship between the exchange rate and the domestic price level in three essays. The first essay (Chapter 2) examines the causality between the exchange rate and consumer prices, and estimates the extent of the exchange rate pass-through to consumer prices for 12 OECD countries for the period 1974 to 2016. Using the adoption of the Euro and the adoption of the policy of targeting inflation in these countries, which represent changes in the monetary policy regime, I divide this time period into two groups and examine causality and pass-through behaviour separately for each country. Based on a newly developed causality measure for multiple horizons, I found that the direction of causality from consumer prices to exchange rate becomes stronger for the countries with the Euro while the direction of causality from the exchange rate to consumer prices becomes stronger for the inflation targeting countries after their respective regime change. By deriving the impulse response functions from a recursive vector autoregressive model, I found that the exchange rate pass-through to consumer prices is not statistically different from zero for the countries with the Euro while the pass-through is statistically significant in four out of the six remaining countries. Before the regime change, the evidence on both fronts was somewhat mixed among these two sets of countries. The second essay (Chapter 3) examines whether the aggregate price level responds asymmetrically to exchange rate appreciations and depreciations in 12 Asian countries for the period 1994 to 2016. Using a recently developed response-based test, I found evidence of asymmetric responses of the consumer price index to exchange rate appreciations and depreciations in 6 out of the 12 countries. The slope-based test also provides evidence of asymmetry for 6 countries, but the results are the same as the response-based tests only for 4 countries. Further, depreciations are not necessarily passed-through to prices more than the appreciations. The third essay (chapter 4) examines the purchasing power parity (PPP) hypothesis for our selected 12 Asian countries for the period 1974 to 2016. Since stationarity of the real exchange rate implies that PPP holds, I employ unit root tests on the real exchange rate in the presence of multiple structural breaks. Our findings support the PPP hypothesis for six countries. Further, there is no additional evidence of trend stationarity of the series in these countries, so that there is no support for the Harrod-Balassa-Samuelson hypothesis. " --

Download or read book Two Essays on the Time Series Behavior of Interest Rates Inflation Rates and an Essay on the Korean Exchange Rate written by Jinho Kim and published by . This book was released on 1992 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: