This paper investigates how changes in the monetary policy framework have affected the overnight money market lending rate for the Dutch segment of the euro area during tranquil and crisis times. We present an EGARCH model on the volatility of the overnight lending rate. The results show that...

This work has the purpose to analyse the strategy of direct inflation targeting starting from theoretical aspects and arriving at the revealing of main characteristics of this strategy in the case of our country. Likewise the work proposes itself to state out the decisions of monetary policy...

We empirically test whether there is a causal link between the real interest rate and the natural rate of interest, which could be a harbinger of secular stagnation if the real rate declines. Outcomes of VAR models for Japan, Germany and the US show that a fall in the real rate indeed affects...

Expectations play a key role in the economic theories that underpin most macroeconomic models. Planning for the future is a central part of economic life. The need to make decisions about the type of car to buy, the amount of education to pursue, and the fraction of income to save forces...

We provide new insights on the formation of inflation expectations - in particular at a time of great financial and economic turmoil - by evaluating results from a survey conducted from July 2009 through July 2010. Participants in this survey answered a weekly questionnaire about their short-,...

This paper examines whether the clarity of central bank communication about inflation has changed with the economic environment. We use readability statistics and content analysis to study the clarity of communication on the inflation outlook by seven central banks between 1997 and 2010....

In terms of economic and financial globalization, central banks functions are to ensure not only monetary stability but also financial stability. The international financial crisis of 2007-2008, has shown that financial stability should be considered a priority objective, and the fact that...

The article aims to carry out a diagnostic analysis of the main challenges faced by monetary policy and which are derived from the implications of the global crisis. There are also shown the main consequences and courses of action that seem to emphasize at the level of the Member States of the...

Since the fluctuations of interest rate act directly upon the entire economy, the methods of managing interest rate represent the priority topic of analysis in the field of interest rate risk management in the context of monetary policy promoted by the National Bank of Romania (NBR). It is known...

We introduce a structural dynamic network model of the formation of lending relationships in the unsecured interbank market. Banks are subject to random liquidity shocks and can form links with potential trading partners to bilaterally Nash bargain about loan conditions. To reduce credit risk...