three goals of the monetary policy

Ngày tải lên: 29/03/2014, 01:20

... structure of households and firms are examined. The paper shows that, at the start of Stage Three of EMU, the income effects of monetary policy are fairly homogenous in the four largest countries of the ... interest rate. The lower the level of long-term interest rates, the higher the impact of a change in the long-term rate on the underlying value of stocks. At the current level of long-term rates ... mutual funds, are the main sources of interest income. The sluggishness of most bank deposit rates is such that the key parameter of the response of interest income to the monetary policy instrument...

Ngày tải lên: 15/03/2014, 14:20

Ngày tải lên: 29/03/2014, 08:20

Ngày tải lên: 09/03/2014, 14:20

... affect the adjustment speed of retail rates towards equilibrium. The extent to which this is the case is measured by the size of ρ1*h, h being the volatility of the unpredictable part of the market ... that the response of bank retail rates to changes in the interest rates on the refinancing operations controlled by the central bank is a major link in the transmission of the ECB monetary policy. A ... 2001). The main lesson of these banking structure studies is that the pricing behaviour of banks may depend on the degree of competition and contestability in the different segments of the retail...

Ngày tải lên: 15/03/2014, 02:20

Ngày tải lên: 20/06/2014, 08:20

Ngày tải lên: 10/08/2014, 23:21

... than the GDP decline in the other group. The reactions of the other variables to a monetary policy shock are essentially the same. A third important characteristic of the financial system is the ... for these countries the existence of cointegration could not be rejected. We therefore specify the VAR models in the level of the variables. Nevertheless, we neither impose the number of cointegrating ... value of unity to those countries where we expected a large reaction to monetary policy shocks on the basis of this criterion. We then constructed an index of the expected effects of monetary policy...

Ngày tải lên: 24/10/2012, 09:40

Ngày tải lên: 15/11/2013, 20:27

... Channel Monetary policy can affect firms’ balance sheets in several ways. For example, expansionary monetary policy, ↑ P e and ↑ the NW of firms and so leads to an ↑ in I and Y. The monetary policy ... relative to the cost of the facilities and equipment they are buying. I ↑ because firms can buy a lot of new investment goods with only a small issue of stock. The transmission mechanism for monetary ... reduces likelihood of financial distress, which raises the desire of consumers to hold durable goods or housing, thus ↑ spending on them. Expansionary monetary policy P e ↑, value of financial...

Ngày tải lên: 05/01/2014, 17:01

... form the basis for the findings. The eight central banks covered are: the Reserve Bank of Australia, the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, the ... at the Reserve Bank of Australia, the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, the Reserve Bank of New Zealand, Norges Bank, and Sveriges Riksbank. The ... solely the responsibility of the authors and should not be interpreted as reflecting the views of the Board of Governors of the Federal Reserve System or of any other person associated with the...

Ngày tải lên: 17/02/2014, 03:20

... influenced by the degree of credibility of the announcement of the wage policy authori- 3 The cause of the increase in production potential is ir- relevant for the further analysis. The increase ... against the background of the new eco- nomic setup in the euro area: While there is a single monetary policy, other areas of economic policy are left to policy makers at the national level. There ... strategies for monetary policy in the euro area. These simulations are supplemented by an analysis of the experience of other countries in Section 3. The examples of the United States, the Netherlands...

Ngày tải lên: 20/02/2014, 20:20

Ngày tải lên: 15/03/2014, 01:20

... to increase the sensitivity of loan supply to changes in monetary policy, thereby strengthening the importance of the lending channel. The second set of regulatory changes affecting the lending ... highlights the importance of considering regulatory factors when investigating the size and nature of the impact of monetary policy on the economy. Since monetary policy operates through the banking ... TRANSMISSION OF MONETARY POLICY 57 strained cases. This process can be repeated for the other variable of particular interest, loans. The testable hypotheses are then obtained by taking derivatives of the...

Ngày tải lên: 15/03/2014, 10:20

... other political goals, which are driven by its preferences. As the coefficients of monetary rules are convolutions of the monetary authority’s preferences and of the economic parameters, the ... that the current inflation rate depends on its lagged values, on the fluctuation of the exchange rate in the previous period and on the two-period lag of the output gap. The verticality of the ... According to the calibration strategy, the estimated parameters of the macroeconomic model and of the identification of preferences in the loss function imply that the optimal monetary policy rule,...

Ngày tải lên: 15/03/2014, 14:20

... compared to the quantiles of the standard normal distribution. The quality of the approximation depends on the values of the parameters N Y ,, the number of rated entities with the same rating ... CHECKING THE SIGNIFICANCE OF DEVIATIONS OF THE REALISED DEFAULT RATE FROM THE FORECAST PROBABILITY OF DEFAULT In Chart 1 the performance of the Wald interval is shown for several values of ... numbers of default, weighted by the inverses of the theoretical variances of the number of defaults. HSLS np d np p ii i ii i i k = − () − () = ∑ 2 1 1 (15) 11 The values that were chosen for the...

Ngày tải lên: 22/03/2014, 20:20

... when  106 The flattening of yieldcurveshasalreadyledtoanarrowing of interestspreads.SeeBankforInternational Settlements(2012)TableVI.1 107 SeeBillGross(2012).Thisisparticularlyperniciousifitthwartslongertermlendingtofund the longerterm investmentthatmanyAME’sreallyneed. 108 SeeMeyer(2012) 109 SeeHaddockandBarnes(2012).Theycontendthat,priorto2007,manyhighlyleveragedpropertydealsin the UKusedswapstominimize the risks of risingfinancingrates.Indeed,many of theseswapshadamaturitylonger than the underlyingloanitself.Nowmany of thesedealsneedto berestructured,butlow policy rateshaveraised the cost of breaking the swaptoprohibitivelevels.Thisisanotherexample of howlow policy ratescanimpede the purging of malinvestmentsin the downswing of the creditcycle. 110 Theseareverysimilarto the implicationsforpensionfundswhichwerediscussedabove. 111 Dickson(2001) 112 Antolinetal(2011),Frenchetal(2011),StandardandPoors(2011)andRamaswamy(2012) 18  closely ... increasehasbeennotable,  72 Thisisnottodenysuccessfuleffortsbyanumber of countries,includingChina,toexpandmarketsinother EME’s. Of coursethisstillleaves the broaderquestion of the robustness of the totality of thosemarketsin the event of aseriousdownturnin the AME’s. 73 ThisproblemisanalogoustothatfacedbyJapanesecorporationsin the 1990’s,aftermanyyears of debt financedinvestmentwhichprovedunprofitable.Koo(2003)stronglycontendsthat the weakness of investment spendinginJapanin the 1990’swasduetothis“balancesheeteffect”,andwasnotdueto ashortage of loans causedbyaweakenedbankingsystem. 74 SeeBIS(2012)p29forafullerdocumentation.AlsoseeMcKinsey(2010)whoidentify the householdsectorin five of the fourteencountriestheyconsiderashavingahighprobability of futuredeleveraging.TheyidentifySpain, the US, the UK,CanadaandKorea.While the householdsectorsinBrazil,Russia, ChinaandIndiawerenotjudged tobeoverleveraged,notethat the dataconsideredextendedonlyto2009.Thus the reportmissed the recent sharpincreasesinhouseholddebtlevelsinthosecountries. 45   TettG(2012)“Sizecanbedeadlyinalowrateworld”FinancialTimes17May  TurnerP.(2011)“Is the long‐terminterestratea policy victim,a policy variableora policy lodestar”–BIS WorkingPaper367,Basel,December  WaldropM.M.(1992)“Complexity”–LemonandSchuster Paperbacks–NewYork  WedelJR.(2009)“ShadowElite”–BasicBooks,NewYork  WhiteW.R(2004)“ArechangesinFinancialStructureExtendingSafetyNets?”–BISWorkingPaper250, Basel  WhiteW.R(2006a)“IsPriceStabilityEnough?”–BISWorkingPaper205,April  White ... is importanttonotethatKeyneshimselfwasnotconvinced of the effectiveness of easymoneyin restoring real growth in the face of a Deep Slump. This is one of the principal insights of the GeneralTheory. 21 Incurrentcircumstances,twoquestions...

Ngày tải lên: 22/03/2014, 23:20

... interesting to study the impact of the founding of the ECB on the public perception of monetary policy. In particular, the long-term perception, linked to the credibility of the policy, seems a particularly ... from the Bundesbank over all the period. We choose the German series due to the central place of the German policy in the European Monetary System before the launch of the ECB and because the ... agents and monetary authorities so that the imperfect knowledge of the former explains why they adopt a learning strategy about monetary policy to infer the level of the long-term monetary policy...

Ngày tải lên: 22/03/2014, 23:20