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Competition, Globalization and the Decline of Inflation

Chen, Natalie; Imbs, Jean; Scott, Andrew - C.E.P.R. Discussion Papers - 2004

markups. Using disaggregated data for EU manufacturing over the period 1988-2000 we find increased openness exerts a negative … and significant impact on sectoral prices. Increased openness lowers prices by both reducing markups and raising … productivity. In response to an increase in openness, markups show a steep short run decline, which partly reverses later, while …

Persistent link: https://www.econbiz.de/10005667140

The Real Interest rate Gap as an Inflation Indicator

Neiss, Katharine; Nelson, Edward - C.E.P.R. Discussion Papers - 2001

A long-standing area of research and policy interest has been the construction of a measure of monetary policy stance. One measure that has been proposed—as an alternative to indices that employ monetary aggregates or exchange rates—is the spread between the actual real interest rate and its...

Persistent link: https://www.econbiz.de/10005791944

The Effect of Monetary Unification on Public Debt and its Real Return

Beetsma, Roel; Vermeylen, Koen - C.E.P.R. Discussion Papers - 2002

We explore the implications of monetary unification for real interest rates and (relative) public debt levels. The adoption of a common monetary policy renders the risk-return characteristics of the participating countries more similar, so that the substitutability of their public debt increases...

Persistent link: https://www.econbiz.de/10005498174

Fiscal Stimulus with spending reversals

Corsetti, Giancarlo; Meier, André; Müller, Gernot - C.E.P.R. Discussion Papers - 2009

The impact of fiscal stimulus depends not only on short-term tax and spending policies, but also on expectations about offsetting measures in the future. This paper analyzes the effects of an increase in government spending under a plausible debt-stabilizing policy that systematically reduces...

Persistent link: https://www.econbiz.de/10004976796

Forward Interest Rates as Indicators of Inflation Expectations

Söderlind, Paul - C.E.P.R. Discussion Papers - 1995

Forward interest rates have become popular indicators of inflation expectations. The usefulness of this indicator depends on the relative volatility and the correlation of inflation expectations and expected real interest rates. This paper studies US and UK data, using a range of different tools...

Persistent link: https://www.econbiz.de/10005067661

Monetary Integration in Europe: Implications for Real Interest Rates, National Stock Markets and the Volatility of Prices and Exchange Rates

Canzoneri, Matthew B; Dellas, Harris - C.E.P.R. Discussion Papers - 1995

Monetary arrangements in Europe vacillated wildly over the last decade, and they may be expected to continue to do so over the next. The literature on this chaotic process has focused on issues of credibility. Here, we focus instead on the longer-run implications of Europe's choice of monetary...

Persistent link: https://www.econbiz.de/10005662228

Counter-Inflationary Policy in the Framework of the EMS

Artis, Michael J - C.E.P.R. Discussion Papers - 1992

The conditions of the `new EMS' - an absence of exchange rate realignments and corresponding added credibility - have given rise to concern about the stabilization properties of the System. Nominal interest rate divergence may have been narrowed ahead of inflation divergence. Cross-country real...

Persistent link: https://www.econbiz.de/10005662333

Real Interest Rates and Central Bank Operating Procedures

Canzoneri, Matthew B; Dellas, Harris - C.E.P.R. Discussion Papers - 1995

In the years following the influential article of Poole (1970), many central banks reoriented their operating procedures to focus more on interest rates and less on monetary aggregates. The rapid restructuring of global financial markets was thought to have led to instability in standard...

Persistent link: https://www.econbiz.de/10005667132

On the Equality of Real Interest Rates Across Borders in Integrated Capital Markets

Minford, Patrick; Peel, David - C.E.P.R. Discussion Papers - 2006

The purpose in this letter is first to review briefly the empirical results on the relationship between real interest rates and real exchange rates; this empirical literature provides little support for the hypothesis of Roll that expected real interest rates are equal in general. Our second aim...

Persistent link: https://www.econbiz.de/10005124145

Real Interest Rates, Nominal Shocks, and Real Shocks

Driffill, John - C.E.P.R. Discussion Papers - 1997

This paper uses a structural time-series analysis to analyse the properties of ex-ante real interest rates of the five major OECD economies in relation to temporary and permanent shocks to real output. Following Blanchard and Quah (1989) we refer to these innovations as ‘nominal’ and...

Persistent link: https://www.econbiz.de/10005136609