Download or read book Interest Rate Reaction Functions and the Taylor Rule in the Euro Area written by Petra Gerlach-Kristen and published by . This book was released on 2003 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Interest Rate Reaction Functions for the Euro Area Evidence from Panel Data Analysis written by Karsten Ruth and published by . This book was released on 2016 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: As of today, estimating interest rate reaction functions for the Euro Area is.
Download or read book Monetary Policy Rules written by John B. Taylor and published by University of Chicago Press. This book was released on 2007-12-01 with total page 460 pages. Available in PDF, EPUB and Kindle. Book excerpt: This timely volume presents the latest thinking on the monetary policy rules and seeks to determine just what types of rules and policy guidelines function best. A unique cooperative research effort that allowed contributors to evaluate different policy rules using their own specific approaches, this collection presents their striking findings on the potential response of interest rates to an array of variables, including alterations in the rates of inflation, unemployment, and exchange. Monetary Policy Rules illustrates that simple policy rules are more robust and more efficient than complex rules with multiple variables. A state-of-the-art appraisal of the fundamental issues facing the Federal Reserve Board and other central banks, Monetary Policy Rules is essential reading for economic analysts and policymakers alike.
Download or read book The Taylor Rule and Its Implications written by Katkate Bunnag and published by . This book was released on 2006 with total page 464 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Taylor Rules for the Euro Area written by Dieter Gerdesmeier and published by . This book was released on 2016 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recently, a number of studies have made an attempt to deal with the key issue of the incompleteness of information available to the central bank when taking its monetary policy decisions. This study adds to this literature by tackling the problem with regard to the euro area. The analysis is based on the simplistic assumption of the central bank following a simple monetary policy rule ?-la-Taylor. Along the lines of work suggested by Orphanides, the study tries to assess whether estimates of reaction functions which are carried out using revised data for the euro area can convey a misleading message in terms of policy recommendations.
Download or read book Uncertainty on Monetary Policy and the Expectations Model of the Term Structure of Interest Rates written by Carlo A. Favero and published by . This book was released on 2001 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Did the Revision of the ECB Monetary Policy Strategy Affect the Reaction Function written by Kai Carstensen and published by . This book was released on 2004 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Taylor Rules and Interest Rate Smoothing in the Euro Area written by Efrem Castelnuovo and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conventional wisdom suggests that central banks implement monetary policy in a gradual fashion. Some researchers claim that this gradualism is due to 'optimal cautiousness'; in contrast, Rudebusch (Journal of Monetary Economics, Vol. 49 (2002), pp. 1161-1187) states that the observed policy rate sluggishness is mainly due to serially correlated exogenous shocks. In this paper we use models in first differences to assess the 'endogenous' versus 'exogenous' gradualism hypothesis for the Euro area. Our results suggest that the joint formalization of the two hypotheses is likely to offer the best simple approximation of the Euro area monetary policy conduct.
Download or read book Asset Prices and Monetary Policy written by John Y. Campbell and published by University of Chicago Press. This book was released on 2008-11-15 with total page 444 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic growth, low inflation, and financial stability are among the most important goals of policy makers, and central banks such as the Federal Reserve are key institutions for achieving these goals. In Asset Prices and Monetary Policy, leading scholars and practitioners probe the interaction of central banks, asset markets, and the general economy to forge a new understanding of the challenges facing policy makers as they manage an increasingly complex economic system. The contributors examine how central bankers determine their policy prescriptions with reference to the fluctuating housing market, the balance of debt and credit, changing beliefs of investors, the level of commodity prices, and other factors. At a time when the public has never been more involved in stocks, retirement funds, and real estate investment, this insightful book will be useful to all those concerned with the current state of the economy.
Download or read book An Empirical Comparison of Bundesbank and ECB Monetary Policy Rules written by Jon Faust and published by . This book was released on 2001 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Introduction of the Euro and the Monetary Policy of the European Central Bank written by Shigeyuki Hamori and published by World Scientific. This book was released on 2010 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Euro area is an extremely unique and important currency area for two reasons. First, it is the single largest currency area to be created in an industrialized region. In a sense, the Euro area is important as a test case for those contemplating the establishment of new currency areas in East Asia, North America or other industrialized regions. Second, it was established by sovereign states working as peers, who, despite various challenges, peacefully and autonomously decided to create a single currency area. In other words, the Euro area is very different from other currency areas created by countries formerly in colonial relationships with each other. Therefore, for regions emerging from a developing status and forming a currency area, the Euro area could serve as a model case.Marking the 10th anniversary of the creation of the European Central Bank (ECB) and the Euro, this invaluable book analyzes the monetary policy of the ECB — the guardian of the Euro — by using recently developed econometric methods. The analysis performed in this book marks a substantial contribution toward understanding the significance of the Euro area as well as the future of the Euro from an international perspective.
Download or read book Monetary Policy Strategies written by International Monetary Fund and published by International Monetary Fund. This book was released on 1988-10-04 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper considers the merits of rules and discretion for monetary policy when the structure of the macroeconomic model and the probability distributions of disturbances are not well defined. It is argued that when it is costly to delay policy reactions to seldom-experienced shocks until formal algorithmic learning has been accomplished, and when time consistency problems are significant, a mixed strategy that combines a simple verifiable rule with discretion is attractive. The paper also discusses mechanisms for mitigating credibility problems and emphasizes that arguments against various types of simple rules lose their force under a mixed strategy.
Download or read book The Taylor Rule and the Transformation of Monetary Policy written by Robert Leeson and published by Hoover Press. This book was released on 2013-09-01 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt: A contributors' "who's who" from the academic and policy communities explain and provide perspectives on John Taylor's revolutionary thinking about monetary policy. They explore some of the literature that Taylor inspired and help us understand how the new ways of thinking that he pioneered have influenced actual policy here and abroad.
Download or read book Can the Predictability of Interest Rates Using Taylor type Rules for the European Central Bank be Improved by Considering the EU 15 Countries Denmark the United Kingdom and Sweden written by Fabian Wochele and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The European Central Bank is responsible for the monetary policy in Euroland. This currency area is a part of a larger market - the EU. Restricting the view to the EU-15, the latter consists of 15 governments, four currencies and one market. A question arising from these facts is if the European Central Bank is influenced only by the Euro Area or if it considers the European market (EU-15) as a whole. Based on the Taylor rule, this thesis examines if data of all EU-15 countries or the interest rates of Sweden and the United Kingdom help to predict the European short term interest rate. Four models are employed, i.e. all combinations of forward-looking vs. contemporaneous rules as well as real time vs. final data models. The estimation methods used are least squares, generalized method of moments and cointegration techniques. Results give some support of better predictability of the European interest rate by including the interest rates of Sweden and the UK into the Taylor rule, although evidence is weak. The case using all EU-15 countries doesn't improve forecasting ability of the Taylor rule. However, it seems as in general the Taylor rule helps in predicting the EONIA.
Download or read book Monetary Policy Rules in the Run Up to the EMU written by Georgios E. Chortareas and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We characterize central bank behavior in the euro area during the run-up to the European Economic and Monetary Union (EMU) era by estimating Taylor rule-type reaction functions at both the individual and aggregate level. We focus on whether national monetary policies during the run-up to the EMU were responding to economic developments according to their own policy rules or to a broader, euro area-wide, policy rule. To consider the last possibility we examine whether national monetary policies were responding to German interest rates. Finally, we compare the performance of the estimated with imposed policy rules.
Download or read book Designing a Simple Loss Function for Central Banks written by Davide Debortoli and published by International Monetary Fund. This book was released on 2017-07-21 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Yes, it makes a lot of sense. This paper studies how to design simple loss functions for central banks, as parsimonious approximations to social welfare. We show, both analytically and quantitatively, that simple loss functions should feature a high weight on measures of economic activity, sometimes even larger than the weight on inflation. Two main factors drive our result. First, stabilizing economic activity also stabilizes other welfare relevant variables. Second, the estimated model features mitigated inflation distortions due to a low elasticity of substitution between monopolistic goods and a low interest rate sensitivity of demand. The result holds up in the presence of measurement errors, with large shocks that generate a trade-off between stabilizing inflation and resource utilization, and also when ensuring a low probability of hitting the zero lower bound on interest rates.
Download or read book Negative Monetary Policy Rates and Portfolio Rebalancing Evidence from Credit Register Data written by Margherita Bottero and published by International Monetary Fund. This book was released on 2019-02-28 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study negative interest rate policy (NIRP) exploiting ECB's NIRP introduction and administrative data from Italy, severely hit by the Eurozone crisis. NIRP has expansionary effects on credit supply-- -and hence the real economy---through a portfolio rebalancing channel. NIRP affects banks with higher ex-ante net short-term interbank positions or, more broadly, more liquid balance-sheets, not with higher retail deposits. NIRP-affected banks rebalance their portfolios from liquid assets to credit—especially to riskier and smaller firms—and cut loan rates, inducing sizable real effects. By shifting the entire yield curve downwards, NIRP differs from rate cuts just above the ZLB.
