or domestic inflation data called for raising interest rates in 2021 and well ahead of the rate increases implemented by …This paper investigates the implications of monetary policy rules during the surge and subsequent decline of inflation … in the euro area and compares them to the interest rate decisions of the European Central Bank (ECB). It focuses on …

that significantly increases fluctuations of output gap and inflation … house prices are often associated with a credit crunch and a long-lasting and painful recession. Furthermore, monetary …-run trend and 2. there is no such a shock and house prices deviate from the trend only due to the impact of other shocks. I show …

nominal interest rate determined by the natural real rate and the inflation rate along with feedback from the output gap and … the inflation rate gap. This rule is so widely respected that policymakers and researchers investigate rule updates and … eliminate, recessions that arise from high and rising inflation rates. With the new rule, the Taylor principle outcome, where …

effective in controlling and stabilizing prices especially inflation; two, expansionary fiscal policy is not only inflationary …, inflation and lending rates. All data was obtained from the Central Bank of Kenya online repositories. The empirical assessment … but leads to higher interests' rates as well and three: there exists traces of fiscal dominance even though it does not …

This talk emphasizes the connection between inflation targeting and monetary policy rules. Inflation targeting is not … monetary policy rule without a target inflation rate. Hence, there is a symbiotic relationship between inflation targeting and … of inflation. Interest rate rules work best within a band between very high inflation and deflation. Outside that band …

surprises and expected real interest or an inverse relationship between anticipated inflation and expected real interest. These …This paper investigates the hypothesis that surprise changes in the money supply and anticipated inflation (the Mundell … of the hypothesized impact of money surprises on real rates while simultaneously testing the Mundell-Tobin hypothesis and …

-frequency variation in the natural rate of interest under certain types of monetary regimes that make inflation I(0) and (approximately … level, the paradox can be recovered from the data generated under inflation-targeting regimes. By the same token, the …We argue that Gibson's paradox has nothing to do with the Gold Standard per se, and it rather originates from low …

-fledged inflation targeting regimes in place or have recently adopted them, using an array of methodologies commonly used in the … that the interest rate gap can be a good predictor of future inflation dynamics and economic growth. In addition, looking … literature. We find that NRIRs have declined in the last decade, with more economically and financially developed economies …

inflation targeting policy. Policymakers can improve outcomes under AIT by (i) targeting a discounted average of inflation, or …This paper considers the performance of average inflation targeting (AIT) policy in a New Keynesian model with adaptive …, the target steady state can be locally unstable under learning if details about the policy are not publicly available …

For expectations of price inflation to affect interest rates, they must affect the behavior of borrowers and lenders or …' and lenders' portfolio behavior play an important role in the relationship between interest rates and inflation … bond supply and bond demand indicate that, all other things equal, the port-folio responses to expected price inflation by …