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Policy Reaction (policy + reaction)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting75%

Terms modified by Policy Reaction

  • policy reaction function
    		•

    Selected Abstracts

    Oil and the Euro area economy

    ECONOMIC POLICY, Issue 60 2009
    Gert Peersman
    Summary We examine the macroeconomic effects of different types of oil shocks and the oil transmission mechanism in the Euro area. A comparison is made with the US and across individual member countries. First, we find that the underlying source of the oil price shift is crucial to determine the repercussions on the economy and the appropriate monetary policy reaction. Second, the transmission mechanism is considerably different compared to the US. In particular, inflationary effects in the US are mainly driven by a strong direct pass-through of rising energy prices and indirect effects of higher production costs. In contrast, Euro area inflation reacts sluggishly and is much more driven by second-round effects of increasing wages. The monetary policy reaction of the ECB to oil shocks is also strikingly different compared to the FED. The inflation objective, relative to the output stabilization objective, appears more important for Euro area monetary authorities than for the FED. Third, there are substantial asymmetries across member countries. These differences are due to different labour market dynamics which are further aggravated by a common monetary policy stance which does not fit all. --- Gert Peersman and Ine Van Robays [source]

    Monetary policy's effects during the financial crises in Brazil and Korea

    INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 1 2003
    Charles Goodhart
    This paper looks at the effect of monetary policy changes on asset prices in the foreign exchange and equity markets of Brazil and Korea. We were searching for evidence whether monetary policy tightening may have had (adverse) counterproductive effects on such asset markets. In common with other authors we find only weak or sporadic evidence for this hypothesis. Using a theoretical model of financial market imperfections, we show that the failure to find monetary policy effectiveness during a crisis can come about not only because of the endogeneity caused by a ,leaning against the wind' policy reaction but also, independently, if there are large and correlated risk premia in the financial markets in which interest rates and determined. Copyright © 2003 John Wiley & Sons, Ltd. [source]

    UNCERTAINTY AND WAGE SETTING IN A MONETARY UNION,

    THE MANCHESTER SCHOOL, Issue 4 2008
    CARSTEN HEFEKER
    The enlargement of the European Monetary Union is likely to lead to an increase of uncertainty about the transmission of monetary policy for the larger union. Adding new members to the central bank council in addition implies that the policy reaction of the enlarged council will be uncertain for an initial period. The paper considers the influence of both types of uncertainty on wage setting and unemployment in the larger monetary union. [source]

    Transplantation Risks and the Real World: What Does ,High Risk' Really Mean?

    AMERICAN JOURNAL OF TRANSPLANTATION, Issue 1 2009
    R. B. Freeman
    Candidates for, and recipients of, transplants face numerous risks that receive varying degrees of attention from the media and transplant professionals. Characterizations such as ,high risk donor' are not necessarily accurate or informative unless they are discussed in context with the other risks patients face before and after transplantation. Moreover, such labels do not provide accurate information for informed consent discussions or decision making. Recent cases of donor-transmitted diseases from donors labeled as being at ,high risk' have engendered concern, new policy proposals and attempts to employ additional testing of donors. The publicity and policy reactions to these cases do not necessarily better inform transplant candidates and recipients about these risks. Using comparative risk analysis, we compare the various risks associated with waiting on the list, accepting donors with various risk characteristics, posttransplant survival and everyday risks we all face in modern life to provide some quantitative perspective on what ,high risk' really means for transplant patients. In our analysis, donor-transmitted disease risks are orders of magnitude less than other transplantation risks and similar to many everyday occupational and recreational risks people readily and willingly accept. These comparisons can be helpful for informing patients and guiding future policy development. [source]