Real Interest Rate Gap in the Eurozone
The real interest rate gap as an inflation indicator
... actual real interest rate. The real rate gap therefore rises one-for-one with the increase in the actual real interest ...output gap and output responses are ...
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The predictive content of the real interest rate gap for macroeconomic variables in the euro area
... The real interest rate gap -IRG-, i.e. the gap between the short term real interest rate and its “natural” level, is a theoretical concept of potential policy ...
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Importance of the Debt-Adjusted Real Exchange Rate in the Eurozone and V4
... (Debt-Adjusted Real Exchange Rate) model can be recommended as an indicator of these external imbalances of individual countries in the monetary ...individual eurozone states and the Visegrád ...
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Eurozone Real Output and Covered Interest Parity Deviations: Can Stronger Real Output Lessen the Deviations?
... of eurozone macroeconomic factors on the euro cross-currency basis, we construct a model relating the euro cross-currency basis with standard macroeconomic factors – exchange rate, money supply and ...
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The Link between Unemployment Rate and Real Output in Eurozone: A Panel Error Correction Approach
... unemployment rate above four percent ...in real GNP" (Okun, 1962: 9), and also or hysteresis theory indicates that if there is rigidity in labor market, cyclical fluctuations will have permanent effect ...
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The Reliability of Macroeconomic Forecasts based on Real Interest Rate Gap Estimates in Real Time: an Assessment for the Euro Area.
... simulated real time experiment, all the more than the available DGSE models of the euro area economy are largely posterior to the introduction of the euro (see for instance Smets and Wouters, ...
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Rebalancing in the eurozone : effects on the terms of trade, the real exchange rate and welfare
... This chapter proceeds in the following way. Firstly, the production side of the economy is defined. Secondly, price indices are derived along with the intratemporal demand functions. These derivations follow chapters ...
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Real divergences and the eurozone crisis
... I found that only one country has converged in terms of labor productivity and total factor productivity. The results suggest that there are notable differences across countries and the whole nation in terms of capital ...
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The natural real interest rate and the output gap in the euro area: A joint estimation
... natural real interest rate explain most of the variation in the real interest rate (Basdevant et al, 2004; Cuaresma et al, 2004; Cour-Thimann et al, 2004; Larsen and McKeown, ...
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Topics in Empirical Finance: Real Interest Rate Parity, Uncovered Interest Rate Parity, and Forecasting Inflation.
... where z t = r t − r t ∗ . If the existence of transactions costs is true, the effect of the real interest rate differential on its change depends on its own size. Arbitrage activities will occur only ...
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Exchange rate volatility in the eurozone
... exchange rate volatility on trade flows should be more important for developing countries; see, ...exchange rate fluctuations, which is aggravated by the existence of sunk costs related to entering foreign ...
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Interest rates, eurobonds and intra-European exchange rate misalignments: the challenge of sustainable adjustments in the eurozone
... the real sector and assets and liabilities of economic agents in order to analyze financial integration in a consistent ...exchange rate misalignments inside the monetary ...exogenous interest rates, ...
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Interest rates, Eurobonds and intra-European exchange rate misalignments: The challenge of sustainable adjustments in the eurozone
... the real sector and assets and liabilities of economic agents in order to analyze financial integration in a consistent ...exchange rate misalignments within the monetary ...exogenous interest rates, ...
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Determinants of interest rate exposure – A study of Eurozone banks
... then. Eurozone banks have started to diversify themselves in various non-interest income activities and aggressively expanded internationally by acquiring many local banks (Goddard et ...the ...
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9 FSA017 Interest rate gap
... A. Gap analysis is undertaken by examining details of interest sensitive assets and liabilities to establish when they will next reprice ...in interest rate), and then tabulating those which ...
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Structural Breaks in the Real Exchange Rate and Real Interest Rate Relationship
... the real exchange rate and real interest rate ...nonstationary real exchange rate, which is the failure of PPP, and a nonstationary difference between the real ...
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Measuring the equilibrium real interest rate
... RIR gap While the behavior of the short-term RIR gap pre- sented in figure 4 squares quite well with the convention- al view, there are a few caveats that call for caution in interpreting this gap as ...
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Measuring the equilibrium real interest rate
... The article is organized as follows. First, we pro- vide a brief description of our baseline model economy. Then, we describe the data and the estimation approach. Next, we present the main results—that is, we present ...
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The Real Interest Rate: An Empirical Investigation
... However, the 3.2 results indicate that the negative correlation of money growth and the real rate may only "arise because of the positive correlation of money growth with inflation: [r] ...
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Lecture 3: Force of Interest, Real Interest Rate, Annuity
... Inflation, Real Rate of Interest Inflation is the growth in prices from year to ...the rate of change in the price of a ”basket of goods”. The rate of inflation is denoted by ...r. ...
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