Unemployment persistence, wage indexing and central bank independence

This paper examines the effect of wage indexation on the optimal degree of central bank conservativeness in a dynamic economy. In particular, we find that when unemployment persists, wage indexation is inflationary as it lowers the will of the central banker to fight inflation. Furthermore, we show that there is a positive relationship between the degree of the monetary authorities'' discount factor and inflation. We conclude that it is optimal to delegate monetary policy to an independent and conservative central banker.unemployment, persistence, central bank, wage indexing

Is 2% the optimal inflation rate for the Euro Area?

According to the relevant literatu re, monetary policy implications concerning the optimal inflation rate can be derived by examining the relationship between inflation and the Relative Price Variability (RPV). This paper studies this issue for selected Euro Area (EA) countries, using monthly data for the Harmonized Index of Consumer Prices. In particular, semi-parametric estimations are employed so as to find the accurate form of the inflation-RPV relationship. The results indicate that this relationship exhibits a U-shape functional profile. Furthermore, the optimal inflation rates for the EA, France, Germany and Spain are also calculated. For all countries and the EA, we find that although the European Central Bank ’ s “ below but close to 2 % ” inflation target is optimal for the EA average, it is not the optimum inflation rate for the individual counties.Junta de Andalucía SEJ-454

On Central Bank Transparency, Independence and Public Debt Policy

In this paper we examine the case of partial central bank transparency and the interaction between public debt management and the design of monetary institutions. In particular, we establish a relationship between central bank transparency and nominal debt and find that it depends on whether the public has (ex-ante) under or overestimated the preferences of the central banker. Furthermore, we analytically examine the relationship between central bank transparency and central bank conservativeness and find it positive

On Central Bank Transparency, Independence and Public Debt Policy

In this paper we examine the case of partial central bank transparency and the interaction between public debt management and the design of monetary institutions. In particular, we establish a relationship between central bank transparency and nominal debt and find that it depends on whether the public has (ex-ante) under or overestimated the preferences of the central banker. Furthermore, we analytically examine the relationship between central bank transparency and central bank conservativeness and find it positive

Societal appreciation of energy security: Volume 4: Value of Lost Load - Greece

The report presents the analysis of the Value of Lost Load, which quantifies the economic value of unserved energy, for the case of Greece. The study presents the results of two surveys, to residential and non-residential electricity consumers.JRC.C.3-Energy Security, Distribution and Market

Societal appreciation of energy security: Volume 2: Long-term security (EE, NL and PT)

The report presents the results of a multicountry survey providing qualitative and quantitative information on the level of appreciation of customers and of regulators, suppliers and other key actors involved in electricity markets. The survey was conducted in Estonia, the Netherlands and Portugal.JRC.C.3-Energy Security, Distribution and Market

Societal appreciation of energy security: Volume 4: Value of Lost Load - Greece

The report presents the analysis of the Value of Lost Load, which quantifies the economic value of unserved energy, for the case of Greece. The study presents the results of two surveys, to residential and non-residential electricity consumers.JRC.C.3-Energy Security, Distribution and Market

Assessment of underlying capacity mechanism studies for Greece

The increased electricity production from variable sources in the EU combined with the overall decline in demand in recent years, have raised concerns about the security of electricity supply, in general, and in particular about generation adequacy and flexibility, prompting some Member States to consider new public interventions, the so-called capacity remuneration mechanisms. This work presents a review of the underlying capacity mechanism studies for Greece based on European best practices to highlight the latest developments and current trends.JRC.C.3-Energy Security, Distribution and Market

Societal appreciation of energy security: Volume 3: Non-household actors (EE, NL and PT)

The availability and continuity of energy supply play a key role in qualifying the energy security of a country. This report explores the meaning of energy security, according to the perceptions and preferences of a broad range of market actors. Making use of interviews and survey data taken in Estonia, the Netherlands and Portugal, the importance of an encompassing set of policy topics/measures is explored and described to investigate the relevance of different dimensions of energy security. The perspectives of residential, industrial and commercial energy users, Distribution System Operators, electricity retailers and producers are analysed rating and ranking the relevance of policy components of energy security. The study provides a snapshot of potential gaps and discrepancies among the views of different categories of market actors and compares information on their beliefs and preferences with those stated by households and the other market actors. This enables to identify any consensus on the different components of energy security.JRC.C.3-Energy Security, Distribution and Market