Similar Search Results

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

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

Fiscal Imbalances, Inflation and Sovereign Default Dynamics

Guillard, Michel; Sosa Navarro, Ramiro - 2009

The central question this paper seeks to answer is how monetary policy might affect the equilibrium behavior of default and sovereign risk premium. The paper is based on �one-interest-rate� model. Public debt becomes risky due to an active fiscal policy, as in Uribe (2006), reflecting the...

Persistent link: https://www.econbiz.de/10015222449

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

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

The Welfare of Ramsey Optimal Policy Facing Auto-Regressive Shocks

Chatelain, Jean-Bernard; Ralf, Kirsten - 2020

With non-controllable auto-regressive shocks, the welfare of Ramsey optimal policy is the solution of a single Ricatti equation of a linear quadratic regulator. The existing theory by Hansen and Sargent (2007) refers to an additional Sylvester equation but miss another equation for computing the...

Persistent link: https://www.econbiz.de/10015226120

Ramsey Optimal Policy in the New-Keynesian Model with Public Debt

Chatelain, Jean-Bernard; Ralf, Kirsten - 2020

In the discrete-time new-Keynesian model with public debt, Ramsey optimal policy eliminates the indeterminacy of simple-rules multiple equilibria between the fiscal theory of the price level versus new-Keynesian versus an unpleasant equilibrium. If public debt volatility is taken into account...

Persistent link: https://www.econbiz.de/10015226127

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

A Simple Algorithm for Solving Ramsey Optimal Policy with Exogenous Forcing Variables

Chatelain, Jean-Bernard; Ralf, Kirsten - 2017

This algorithm extends Ljungqvist and Sargent (2012) algorithm of Stackelberg dynamic game to the case of dynamic stochastic general equilibrium models including exogenous forcing variables. It is based Anderson, Hansen, McGrattan, Sargent (1996) discounted augmented linear quadratic regulator....

Persistent link: https://www.econbiz.de/10015257276