This paper lays out a tractable model for fiscal and monetary policy analysis in a currency union, and analyzes its implications for the optimal design of such policies. The model incorporates country-specific shocks and nominal rigidities. Under the assumptions, the optimal monetary policy requires that inflation be stabilized at the...
This paper uses a micro-founded macro econometric modeling framework to investigate the design of monetary policy when the central bank faces uncertainty about the true structure of the economy. It applies Bayesian methods to estimate the parameters of the baseline specification using postwar U.S. data, and then determine the policy...
This study takes stock of the institutional reform of monetary policy in Latin America since the early 1990s. It argues that strengthening the legal independence of central banks, together with macroeconomic policies, was instrumental in reducing inflation from three-digit annual rates in the 1990s to single-digit territory in 2004. The...
The purpose of this paper is to assess the efficacy of current federal government policies toward inbound foreign direct investment. At first glance there would not appear to be much of an issue. While there are huge new investment opportunities in transition economies, Canada remains a relatively safe and attractive...
This paper proposes a markedly different transmission mechanism from monetary policy to the macro economy, focusing on how policy changes nominal inertia in the Phillips curve. Using recent theoretical developments, the paper examines the properties of a small, estimated monetary model distinguishing four monetary regimes employed since the late 1950s....
This paper investigates the role that imperfect knowledge about the structure of the economy plays in the formation of expectations, macroeconomic dynamics, and the e±cient formulation of monetary policy. The process of perpetual learning introduces an additional layer of dynamic interaction between monetary policy and economic outcomes. We find that...
The nature of monetary policy during the 1970s is evaluated through the lens of a forward-looking Taylor rule based on perceptions regarding the outlook for inflation and unemployment at the time policy decisions were made. Though the resulting activist policies could have appeared highly promising, they proved, in retrospect, counterproductive....
Research has provided the evidence of important changes in the U.S. economic environment over the last few years. This appears to be associated with an alteration of the monetary transmission mechanism. This paper investigates the implications for the evolution of monetary policy effectiveness. Using an identified VAR Vector AutoRegression over...
A number of recent studies have suggested that activist stabilization policy rules responding to inflation and the output gap can attain simultaneously a low and stable rate of inflation as well as a high degree of economic stability. This paper demonstrates that the policy settings that would have been suggested...
The rapid spread of the internet and some aspects of e-finance2 are changing the financial system in ways that are hard to predict. This has potential ramifications for monetary policy all through the process of its operation. Effects may be felt on the central bank's ability to operate monetary policy,...
The Bank of Canada carries out monetary policy with the aim of protecting the value of Canadian money by keeping inflation low and stable. Monetary policy is implemented mainly through changes in the Target for the overnight rate which influence other interest rate and affect the level of spending and...
This paper explores various aspects of these phenomena. It uses standard empirical models, and an investigation of the different approaches to inflation targeting in the three countries—including a case study of the 1998 international financial crisis—to assess how well a floating currency serves a resource-rich economy, and how monetary policy...
Monitory Policy is about ensuring that money can play its vital role in helping our economy run smoothly. To do this, the Bank of Canada focuses monetary policy on protecting the value of Canadian money by keeping inflation low and stable. It’s ultimate objective says explains that inflation low and...
This paper, demonstrates that the policy settings that would have been suggested by a rule during the 1970s, based on real-time data published by the U.S. Commerce Department, do not greatly differ from actual policy during this period. To the extent the Taylor's rule is believed to provide a reasonable...
TYNGSBORO, Mass. -- Beacon Power Corporation (NASDAQ: BCON), a company that designs and develops advanced products and services to support more stable, reliable and efficient electricity grid operation, today praised last week's enactment of the Green Communities Act, Massachusetts's landmark energy bill. Signed into law July 2nd...
NEW YORK -- Ambac Financial Group, Inc. (NYSE: ABK) Ambac today announced that it has had positive discussions with the Office of the Commissioner of Insurance for the State of Wisconsin OCI regarding a plan to capitalize its Connie Lee subsidiary with an $850 million contribution of...
NEW YORK -- Fitch Ratings is conducting a review process of the possible financial impact of some recent regulatory measures mandated by the Finance Ministry and The Banking Superintendence related to the investment portfolio of Venezuelan banks. On May 19 2008, the Finance Ministry in...
NEW YORK -- Ambac Financial Group, Inc. (NYSE: ABK) Ambac announced today that its Board of Directors has authorized up to $50 million for share repurchases of its common stock. The repurchase of shares under the Stock Repurchase Program is conditioned up the completion of the offering...
CHICAGO, July 2 /PRNewswire-FirstCall/ -- First Industrial Realty Trust, Inc. , a leading provider of industrial real estate supply chain solutions, will host its second quarter 2008 results conference call on Thursday, July 24, 2008. President and CEO Mike Brennan will lead the call which...
RIO DE JANEIRO, Brazil & SAO PAULO, Brazil -- Fitch Ratings has revised the Rating Outlook on the Issuer Default Ratings IDRs and long-term National Ratings of Rede Energia S.A. Rede, and its subsidiaries, Centrais Eletricas Matogrossenses S.A. Cemat and Centrais Eletricas do Para S.A. Celpa, to...
Articles 2008-07-01
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