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Discretionary Monetary Policy (discretionary + monetary_policy)
Selected AbstractsStabilising Properties of Discretionary Monetary Policies in a Small Open Economy,THE ECONOMIC JOURNAL, Issue 508 2006Alfred V. Guender This article sets out a simple New Keynesian open-economy model and shows that the conduct of discretionary monetary policy in an open economy differs substantially from the closed-economy framework. The article shows analytically that the existence of the direct exchange rate channel in the open economy Phillips Curve impairs the perfect stabilising property of monetary policy in the face of demand-side disturbances under domestic inflation targeting. If CPI inflation is instead the target, then the perfect stabilising property of monetary policy breaks down even in the absence of the direct exchange rate channel in the Phillips Curve. [source] Forecast-Based Monetary Policy: The Case of SwedenINTERNATIONAL FINANCE, Issue 3 2003Per Jansson Central banks are dominant players in financial markets and economic policy. For both democratic and efficiency reasons, it is important that central banks' actions can be understood, predicted, and evaluated. Inflation-targeting central banks that publish their forecasts provide unique opportunities for detailed studies of monetary policy based on real-time data. This paper demonstrates how a central bank's forecasts can be used to identify two different forms of discretionary monetary policy: ,policy shocks' (deviations from systematic policy) and ,judgements' in forecasting. [source] Monetary Policy in the Greenspan Era: A Time Series Analysis of Rules vs.OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 1 2009Discretion Abstract Relationships between the Federal funds rate, unemployment, inflation and the long-term bond rate are investigated with cointegration techniques. We find a stable long-term relationship between the Federal funds rate, unemployment and the bond rate. This relationship is interpretable as a policy target because deviations are corrected via the Federal funds rate. Deviations of the actual Federal funds rate from the estimated target give simple indications of discretionary monetary policy, and the larger deviations relate to special episodes outside the current information set. A more traditional Taylor-type target, where inflation appears instead of the bond rate, does not seem congruent with the data. [source] Stabilising Properties of Discretionary Monetary Policies in a Small Open Economy,THE ECONOMIC JOURNAL, Issue 508 2006Alfred V. Guender This article sets out a simple New Keynesian open-economy model and shows that the conduct of discretionary monetary policy in an open economy differs substantially from the closed-economy framework. The article shows analytically that the existence of the direct exchange rate channel in the open economy Phillips Curve impairs the perfect stabilising property of monetary policy in the face of demand-side disturbances under domestic inflation targeting. If CPI inflation is instead the target, then the perfect stabilising property of monetary policy breaks down even in the absence of the direct exchange rate channel in the Phillips Curve. [source] | ||||||||||