[PDF] Top 20 Model-based inflation forecasts and monetary policy rules. NBB Working Paper Nr. 1

... The model is an application of the real business cycle methodology for an open economy with sticky prices and wages 7 . Households maximise a utility function over a finite life horizon with the following ... See full document

... in monetary policy, convergence towards the new equilibrium evolves smoothly over ...bank’s inflation target (Kozicki and Tinsley, 2003) or uncertainty about the central bank’s preferences of ... See full document

... Taylor model to allow for sectoral heterogeneity with contract lengths suggested by the ...to model any distribution of contract lengths including the one generated by the Calvo ...and monetary ... See full document

... a monetary union is beneficial if the gains exceed the costs of adjusting to asymmetries stemming from shocks through means other than monetary policy, that is labour mobility, wage and price ... See full document

... both based on a market-led ...economic policy paradigms. It showed to French policy-makers, that, for Germany, monetary stability was a political issue of the highest level and not something ... See full document

... Economic Policy of the Community" (CEC, ...these forecasts, the authorities of the Member States and the Community could work out a common medium-term economic ...Economic Policy Committee", ... See full document

... was based on previous estimation outcomes and trials with a very weak ...and 1, but a rather strict standard error was used to have a clear separation between the persistent and the non-persistent ...the ... See full document

... is based on a stylised business cycle model with …rm entry as the only form of ...(state-contingent) policy instruments are lump sum taxes, the interest rate and the money ...The policy maker ... See full document

... This paper estimates a medium-scale DSGE model with search unemployment by matching model and data ...of inflation indexation and a persistent response of monetary policy to ... See full document

... estimating monetary policy reaction functions based on research by Hu and Phillips ...drives policy rate changes and actually implementing interest rate ...aggressive policy rule as the ... See full document

... analysed monetary policy behaviour in the presence of imperfect exchange rate ...Obstfeld-Rogoff model and argue that in contrast to the findings of Obstfeld and Rogoff (2000b) in this case optimal ... See full document

... This paper considers the monetary policy implications of a model that features input-output connections between stages of production, so that a distinction between CPI inflation and PPI ... See full document

... price inflation expectation is assumed to be common to both households and ...prediction model, involving consumer price inflation, changes in unit labour costs and import price inflation with ... See full document

... our model was not commented ...largely based on a rise in the upward risks to price stability due to strong output and employment growth in a favourable international environment and the delayed ... See full document

... This paper investigates the influence of positive trend inflation on the equilibrium determinacy in the typical New-Keynesian model with capital accumulation ...this model the monetary ... See full document

... When inflation is very uncertain, as it was in the UK for a generation from the late 1960s to the early 1990s, both fixed and floating rate debt have large ...Higher-than-expected inflation arbitrarily ... See full document

... inflation forecasts”. GG then examine the link between the inflation forecasts and the interest rate decisions by way of a narrative analysis and show that this link is very ...current ... See full document

... of inflation target in developing countries, and found no evidence that the inflation targeting regime improves performance of inflation and output growth in developing ...is, inflation ... See full document

... The above discussion also suggests that the choice of a reliable measure for quantifying CBI is bound to involve a certain degree of conceptual ambiguity. Indeed, there exist various classifications of independence in ... See full document

... an inflation targeting framework or a fixed exchange rate regime is the following: a positive (negative) commodity price shock should be compensated by an appreciation (depreciation) of the nominal exchange rate ... See full document