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The Maastricht Criteria and Optimal Monetary and Fiscal Policy Mix for the EMU Accession Countries

Lipinska, Anna - 2008

Maastricht convergence criteria induces additional welfare costs that amount to 60% of the initial deadweight loss associated …

Persistent link: https://www.econbiz.de/10015217654

Fonction de reaction de la banque centrale et credibilite de la politique monétaire: Cas de la BEAC

KAMGNA, Severin Yves; NGUENANG, Christian; TALABONG, Hervé - 2009

In this paper, using monetary policy rules, we build a model which describes the fixing of the interest rate by the Bank of Central African's States (BEAC). First, with a GMM adapted for a forward looking rule, we propose a reaction function for this central bank. The result shows that from 1986...

Persistent link: https://www.econbiz.de/10015217762

Why should central banks be independent?

Harashima, Taiji - 2007

Most explanations for the necessity of an independent central bank rely on the time-inconsistency model and therefore assume that governments are weak, foolish, or untruthful and tend to cheat people. The model in this paper indicates, however, that an independent central bank is not necessary...

Persistent link: https://www.econbiz.de/10015218915

Discretionary Policy and Multiple Equilibria in LQ RE Models

Blake, Andrew P.; Kirsanova, Tatiana - 2006

We study discretionary equilibria in dynamic linear-quadratic rational expectations models. In contrast to the assumptions that pervade this literature we show that these models do have multiple equilibria in some situations. We demonstrate the existence of multiple discretionary equilibria by...

Persistent link: https://www.econbiz.de/10015221123

Fiscal policy, institutional quality and central bank transparency

Dai, Meixing; Sidiropoulos, Moïse; Spyromitros, Eleftherios - 2010

This paper examines the issues of institutional quality and central bank transparency through the interaction of monetary and fiscal policies. We have found that the effects of transparency and corruption on macroeconomic performance and volatility depend on the relative importance of the...

Persistent link: https://www.econbiz.de/10015222282

Central bank reaction to public deficit and sound public finance: the case of the European Monetary Union

Canale, Rosaria Rita - 2010

The paper aims to shed light on the relation between monetary and fiscal policy in EMU, focusing on the interest rates and deficit dynamics. We present a theoretical model in which monetary and fiscal policy independently interact in a closed economic system through their own instrument, namely,...

Persistent link: https://www.econbiz.de/10015222927

The impacts of economic structures on the performance of simple policy rules in a small open economy

Siok Kun, Sek - 2009

the domestic inflation targeting rules in term of welfare loss. However, more complicated domestic inflation targeting …

Persistent link: https://www.econbiz.de/10015223156

Expectations Traps and Monetary Policy with Limited Commitment

Himmels, Christoph; Kirsanova, Tatiana - 2011

multiple equilibria under pure discretion, and under full commitment there are two distinct determinate regimes. We study how … these properties change over the continuum of intermediate cases between commitment and discretion. We find that although …We study the existence and uniqueness properties of monetary policy with limited commitment in LQ RE models. We use a …

Persistent link: https://www.econbiz.de/10015225855

Indian money market dynamics

Nath, Golaka; Raja N, Aparna - 2012

The short term market is an important source for banks and institutions to secure funds to align their short term asset liability mismatches. Central Banks use the market to signal policy stance changes. In India, Reserve Bank of India uses monetary policy not only to signal the policy stances...

Persistent link: https://www.econbiz.de/10015232188

Did the Crisis Change it All? Evidence from Monetary and Fiscal Policy

Mitreska, Ana; Kadievska Vojnovic, Maja; Georgievska, Ljupka - 2010

The recent financial and economic crisis has triggered bold and diverse policy responses to prevent further, sharper and prolonged adverse effects to the financial and the real sector. The measures for alleviating the cycle were a feature both of the advanced and the emerging and developing...

Persistent link: https://www.econbiz.de/10015234979