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A new application of Taylor rules: Model evaluation

Salyer, Kevin; Van Gaasbeck, Kristin - 2000

Taylor rules posit a linear relationship between the output gap, inflation, and short-term nominal interest rates. Previous work has shown that the relationship between these key economic variables as captured by the Taylor rule is quite robust both across countries and monetary policy regimes....

Persistent link: https://www.econbiz.de/10010318600

Greenspan and the Greenbook

Tchaidze, Robert R. - 2002

A vast literature has emerged using Taylor rules to analyze monetary policy Although very attractive both theoretically and empirically such rules imply a mechanical response by the policy variable to fundamental ones This study looks for empirical evidence of a more sophisticated monetary...

Persistent link: https://www.econbiz.de/10010293458

Announcements of Interest Rate Forecasts: Do Policymakers Stick to Them?

Mirkov, Nikola; Natvik, Gisle James - 2013

If central banks value the ex-post accuracy of their forecasts, previously announced interest rate paths might affect the current policy rate. We explore whether this "forecast adherence" has influenced the monetary policies of the Reserve Bank of New Zealand and the Norges Bank, the two central...

Persistent link: https://www.econbiz.de/10012143823

Monetary policy with forward-looking rules: The Swiss case

Cuche, Nicolas A. - 2000

We estimate monetary policy rules in Switzerland for 1981-1997. In addition to an inflation gap, we find that forward-looking rules with output and exchange rate gaps nicely fit monetary aggregates as well as the call rate. We split the sample in 1990 when the Swiss National Bank replaced annual...

Persistent link: https://www.econbiz.de/10011430020

An institutional analysis of China's reform of their monetary policy framework

He, Zengping; Jia, Genliang - 2019

This paper traces the history of China's reform of its monetary policy framework and analyzes its success and problems …. In the context of financial marketization and the failure of the quantity-targeting framework, the People's Bank of China … China's Treasury Single Account system. The missing role of the Treasury in monetary policy operations increases the …

Persistent link: https://www.econbiz.de/10012142972

Commitments, Discreetness and Discretion of PolicyMakers with Private Information

Mertens, Elmar - National Centre of Competence in ResearchFinancial … - 2009

When a policymaker is better informed than the public, public beliefs about the hidden informationemerge as additional state variables, managed by the policymaker. General methodsare presented to compute optimal commitment and discretion policies.Under commitment, policy is additive in two...

Persistent link: https://www.econbiz.de/10005868710

Managing Beliefs about Monetary Policy underDiscretion

Mertens, Elmar - National Centre of Competence in ResearchFinancial … - 2009

Monetary policy is most effective when public beliefs about future policies are activelymanaged. This is the appeal of policy rules and commitment strategies, typically absent underdiscretion. But when a policymaker has some private information — as is the case in reality— belief management...

Persistent link: https://www.econbiz.de/10005868716

Quantifying forward guidance and yield curve control

Koeda, Junko; Wei, Bin - 2024

This study evaluates the effectiveness of Japan's unconventional monetary policies over the past quarter century within a unified term structure framework. It specifically examines the impact of the Bank of Japan's (BOJ) outcome-based forward guidance and yield curve control (YCC) and...

Persistent link: https://www.econbiz.de/10015189278

Taylor rules with endogenous regimes

Aastveit, Knut Are; Cross, Jamie; Furlanetto, Francesco; … - 2024

The Fed's policy rule switches during the different phases of the business cycle. This finding is established using a dynamic mixture model to estimate regime-dependent Taylor-type rules on US quarterly data from 1960 to 2021. Instead of exogenously partitioning the data based on tenures of the...

Persistent link: https://www.econbiz.de/10015195500

Monetary and macroprudential policy: The multiplier effects of cooperation

Bassi, Federico; Boitani, Andrea - 2021

A BMW model is augmented with a credit market affected by banks' balance sheet and used to assess the dynamic performance of an economy in the face of demand and financial shocks under different assumptions about the interactions between monetary and macroprudential policy. We show that the...

Persistent link: https://www.econbiz.de/10013364505