1,115 research outputs found
Are contemporary central banks transparent about economic models and objectives and what difference does it make? - commentary
Monetary policy ; Econometric models ; Banks and banking, Central
Monetary targeting and inflation: 1976-1984
Inflation (Finance) ; Monetary policy - United States ; Money supply
Monetary Information and Interest Rates
A model of interest rate movements in response to new information on the money stock is developed.The model, which incorporates several earlier approaches as special cases, makes explicit the manner in which estimated interest rate responses to money surprises depend on the relative variances of nominal and real disturbances, as well as on the monetary authority's policy and the credibility of that policy.
Precautionary policies
The research literature in economics has explored the task of decision making under uncertainty and has developed theories about "precautionary" policies and "robust" policies. This Economic Letter summarizes some of the latest results and debates in this literature.Monetary policy ; Forecasting ; Risk
Measurement Error and the Flow of Funds Accounts: Estimates of HouseholdAsset Demand Equations
In the household sector of the Flow of Funds Accounts, the difference between net acquisition of financial assets and net financial savings is equal to a statistical discrepancy which is often quite large relative to the reported changes in asset holdings. This means that the budget restrictions emphasized in the Brainard-Tobin approach to specifying asset demand equations are not satisfied by the data commonly used to estimate such equations. The view adopted in this paper is that the statistical discrepancy should be thought of as resulting from measurement error in the Flow of Funds data. By imposing a structure on the measurement error, a consistent estimator is developed and used to estimate asset demand equations for the household sector. The demand equations are similar in specification to those used by others so that the results allow a direct assessment of the effects of alternative treatments of the statistical discrepancy. The empirical results suggest that qualitative conclusions about the effects of financial flows and interest rates on asset demands are not affected by the way the statistical discrepancy is treated. Quantitative conclusions are, however, affected.
Three questions concerning nominal and real interest rates
Interest rates ; Monetary policy - United States
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