In this paper policy issues related to the operation of monetary policy in a low inflation environment are discussed. The successful reduction of inflation rates in a number of OECD countries in recent years arguably represents a regime shift that is likely to affect the operation of monetary...

In this paper policy issues related to the operation of monetary policy in a low inflation environment are discussed. The successful reduction of inflation rates in a number of OECD countries in recent years arguably represents a regime shift that is likely to affect the operation of monetary...

We address the importance of external versus domestic conditions in determining emerging market bond (EMBI) spreads. Using principal components, we derive a measure of global risk aversion, which is shown to have a significant and, when interacted with a country's foreign debt to GNI ratio,...

In this paper, the authors analyse the role of asset market prices in the formation of monetary policy with particular reference to equity markets, a concern for policy makers in the late 1990s. While asset prices have potentially valuable supplementary information for monetary policy makers,...

In this paper, the authors analyse the role of asset market prices in the formation of monetary policy with particular reference to equity markets, a concern for policy makers in the late 1990s. While asset prices have potentially valuable supplementary information for monetary policy makers,...

In this paper a model is presented and estimated that explains real long-term interest rates in terms of developments in low-frequency and high-frequency economic factors in a multi-country framework, using a data set covering 17 OECD countries since the early-1980s. A simultaneous estimation...