Controllability of longer-term interest rates requires that the persis-tence of their deviations from the central bank's policy rate (i.e. thepolicy spreads) remains suffciently low. This paper applies fractionalintegration techniques to assess the persistence of policy spreads ofeuro area money...

Die Entschlossenheit der Wirtschaftspolitik,sich mit niedrigen Zinsen undfi skalischen Impulsen gegen dieWeltwirtschaftskrise zu stemmen,provoziert Infl ationsbefürchtungen.Sie beruhen teilweise auf Mißverständnissenhinsichtlich des „Gelddruckens“der Notenbanken. Die Geldpolitikverfügt...

Global liquidity expansion has been very dynamic since 2001. Contrary to conventionalwisdom, high money growth rates have not coincided with a concurrent rise in goodsprices. At the same time, however, asset prices have increased sharply, significantlyoutpacing the subdued development in...

The globalization of banking in the United States is influencing the monetarytransmission mechanism both domestically and in foreign markets. Using quarterlyinformation from all U.S. banks filing call reports between 1980 and 2005, we findevidence for the lending channel for monetary policy in...

Recent data show substantial increases in the size of gross external asset and liabilitypositions. The implications of these developments for optimal conduct of monetarypolicy are analyzed in a standard open economy model which is augmented to allowfor endogenous portfolio choice. The model...

We examine the global dimension of inflation in 24 OECD countries between 1980 and 2007in a traditional Phillips curve framework. We decompose output gaps and changes in unitlabor costs into common (or global) and idiosyncratic components using a factor analysis andintroduce these components...

Aggregated output in industrialized countries has become less volatile over the pastdecades. Whether this “Great Moderation” can be found in firm level data as wellremains disputed. We study the evolution of firm level output volatility using abalanced panel dataset on German firms that...

This paper develops a theoretical model of dynamic decision-making of a monetarypolicy committee with heterogeneous members. It investigates the optimal transparency,and the optimal way of transmitting information of committees, by analysing the effectsdifferent communication strategies have on...

This paper investigates the transmission of monetary policy in the euro area based onthe factor augmented vector autoregressive approach of Bernanke, Boivin and Eliasz(2005) as well as on a standard VAR model. We focus on the reaction of monetaryaggregates to a one-off monetary policy shock. We...