Search Results - subject:"Reaction functions"

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Is Fiscal Policy Sustainable in Developing Economies?

Ghatak, Subrata; Sánchez-Fung, José R. - Valtion taloudellinen tutkimuskeskus (VATT), Government … - 2006

This paper investigates fiscal policy sustainability in Peru, the Philippines, South Africa, Thailand, and Venezuela using competing methodologies. Standard unit roots and cointegration analyses do not endorse the validity of the intertemporal budget constraint. In contrast, to varying degree...

Persistent link: https://www.econbiz.de/10005545925

A Practical Model-Based Approach to Monetary Policy Analysis: Overview

Laxton, Douglas; Berg, Andrew; Karam, Philippe D - International Monetary Fund (IMF) - 2006

This paper motivates and describes an approach to forecasting and monetary policy analysis based on the use of a simple structural macroeconomic model, along the lines of those in use in a number of central banks. It contrasts this approach with financial programming and its emphasis on monetary...

Persistent link: https://www.econbiz.de/10005768925

The Measurement of Central Bank Autonomy; Survey of Models, Indicators, and Empirical Evidence

Laurens, Bernard; Arnone, Marco; Segalotto, Jean-François - International Monetary Fund (IMF) - 2006

This paper presents a survey of the literature on the measurement of central bank autonomy. We distinguish inputs that constitute the building blocks in the literature, and the literature that builds on them. Issues including sensitivity analysis, robustness, and endogeneity are discussed. The...

Persistent link: https://www.econbiz.de/10005769279

Practical Model-Based Monetary Policy Analysis; A How-To Guide

Laxton, Douglas; Berg, Andrew; Karam, Philippe D - International Monetary Fund (IMF) - 2006

This paper provides a how-to guide to model-based forecasting and monetary policy analysis. It describes a simple structural model, along the lines of those in use in a number of central banks. This workhorse model consists of an aggregate demand (or IS) curve, a price-setting (or Phillips)...

Persistent link: https://www.econbiz.de/10005599522

Stabilizing Inflation in Iceland

Honjo, Keiko; Hunt, Ben - International Monetary Fund (IMF) - 2006

This paper provides some empirical estimates on how tightly is it feasible to control inflation in a very small open economy such as Iceland. Estimated macroeconomic models of Canada, Iceland, New Zealand, the United Kingdom, and the United States are used to derive efficient monetary policy...

Persistent link: https://www.econbiz.de/10005605114

Procyclical Fiscal Policy; Shocks, Rules, and Institutions: A View From Mars

Manasse, Paolo - International Monetary Fund (IMF) - 2006

This paper assesses the roles of shocks, rules, and institutions as possible sources of procyclicality in fiscal policy. By employing parametric and nonparametric techniques, I reach the following four main conclusions. First, policymakers' reactions to the business cycle is different depending...

Persistent link: https://www.econbiz.de/10005825776

Primary Surplus Behavior and Risks to Fiscal Sustainability in Emerging Market Countries; A "Fan-Chart" Approach

Celasun, Oya; Debrun, Xavier; Ostry, Jonathan David - International Monetary Fund (IMF) - 2006

This paper proposes a probabilistic approach to public debt sustainability analysis (DSA) using "fan charts." These depict the magnitude of risks-upside and downside-surrounding public debt projections as a result of uncertain economic conditions and policies. We propose a simulation algorithm...

Persistent link: https://www.econbiz.de/10005826339

Asset Prices as Indicators of Euro Area Monetary Policy: An Empirical Assessment of Their Role in a Taylor Rule

Siklos, P.; Bohl, M. - Department of Economics, School of Business and Economics - 2006

advantage over reaction functions estimated in the conventional manner. A policy implication is that central banks ought to … release their own forecasts and the basis upon which they are generated. Keywords: Monetary policy reaction functions … not only more plausible reaction functions but ones that achieve a better fit. However, the asset price found to be most …

Persistent link: https://www.econbiz.de/10005448681

On the Properties of Various Estimators for Fiscal Reaction Functions

Celasun, Oya; Kang, Joong Shik - International Monetary Fund (IMF) - 2006

estimations. A growing number of studies estimate fiscal policy reaction functions-that is, relationships between the primary … dynamic panel model and show the LSDV method to outperform a number of alternatives in estimating fiscal reaction functions. …

Persistent link: https://www.econbiz.de/10005263679

The Role of Asset Prices in Euro Area Monetary Policy: Specification and Estimation of Policy Rules and Implications for the European Central Bank

Bohl, Martin T.; Siklos, Pierre L. - 2005

This paper estimates forward-looking and forecast-based Taylor rules for France, Germany, Italy, as well as the euro area, using both final revised data and real-time data. We are particularly interested in the impact of adding asset prices to the standard Taylor rule specification. Since...

Persistent link: https://www.econbiz.de/10010296350