In the first section of the paper we have used a New Keynesian DSGE framework to verify if a higher permanent inflation target would be welfare improving, given the extremely

In this paper, we build on Svensson’s (1997) inflation targeting framework by explicitly taking into account the lagged effect of monetary policy and characterize the optimal

This would help communicate to markets how it is that the purchase program is consistent with a steady state with inflation at target and output at potential.. This would

In Section 4, it is shown that a system with asymptotically stable zero dynamics is high-gain stabilizable with constant gain (in case of proper inverse transfer function) and

Keywords: triple-F crisis, inflation targeting, interest rate policy, foreign exchange intervention, monetary transmis- sion mechanism..

whose growth is affected by policy, two alternative forms of insurance against encountering the ZLB are available to an activist policy-maker: building a buffer of inflation and

In this paper we have used a simple, two equation model of a closed economy, augmented with an asset-price bubble, to investigate what impact the zero lower bound on nominal

Potencialno odzivnost obrestnih mer oziroma tržnih donosnosti državnih obveznic Nemčije, Italije in Španije na objave makroekonomskih podatkov smo merili s pomočjo regresijske enačbe,

We analyse the macroeconomic effects of a protracted period of low and falling inflation rates when monetary policy is constrained by the zero lower bound (ZLB) on nominal

The permanent fall of inflation, the adoption of inflation targeting (IT) and a financial crisis altered the transmission mechanism of monetary policy.. Low inflation and IT

Keywords: Optimal monetary policy, …nancial accelerator, lower bound on nominal interest rates, price-level targeting, …scal

This paper quantifies the effect of non-traditional monetary easing at the zero lower bound on interest rate, so called “quantitative easing monetary policy” which the BOJ

By contrast, Jaroci´ nski and Smets (2008) use a mixture of zero and sign restrictions to identify monetary policy shocks and find that a persistent 25 basis point tightening of

Especially when the size of spillover effects can be large as it can be in an environment of lower bound, it is important to observe how the effect of fiscal policy shocks

The emissions are projected to increase significantly: According to the third IMO GHG study (IMO 2014), the emissions are ex­ pected to increase by 50 to 250% in the

Keywords: supply shocks, Covid-19, hysteresis, investment, endogenous growth, monetary policy, fiscal policy, zero lower bound, Keynesian growth, stagnation

New Keynesian DSGE model comprises three main elements: a consumption Euler equation that links interest rates to consumption and economic activity more generally; a New Key-

Once the nominal interest rate reaches the zero lower bound (ZLB), monetary policy looses the ability to stimulate the economy by further reducing the nominal interest rate. Yet,