Open Access. Powered by Scholars. Published by Universities.®
Social and Behavioral Sciences Commons™
Open Access. Powered by Scholars. Published by Universities.®
- Institution
- Publication
- Publication Type
Articles 1 - 8 of 8
Full-Text Articles in Social and Behavioral Sciences
On Some Subtle Implications Of The Choice Of Numeraire For Monetary Policy In Developing Countries, Eduardo Zambrano
On Some Subtle Implications Of The Choice Of Numeraire For Monetary Policy In Developing Countries, Eduardo Zambrano
Economics
Numeraire choice is often deemed a problem of purely analytical convenience. In this paper I show that there is more to numeraire selection than meets the eye for the formulation of monetary policy in countries with weak fiscal institutions. I show how (a) improper numeraire choice can dramatically overstate or understate Central Bank profits and (b) how this can threaten the ability of a Central Bank to keep inflation under control. I show point (a) in the context of Monte Carlo experiments calibrated for the Venezuelan economy and point (b) in an infinitely lived representative agent model that illustrates the …
Inflation And Economic Growth: A Cross-Country Non-Linear Analysis, Robert Pollin, Andong Zhu
Inflation And Economic Growth: A Cross-Country Non-Linear Analysis, Robert Pollin, Andong Zhu
PERI Working Papers
This paper presents new non-linear regression estimates of the relationship between inflation and economic growth for 80 countries over the period 1961 – 2000. We perform tests using the full sample of countries as well as sub-samples consisting of OECD countries, middle-income countries, and low-income countries. We also consider the full sample of countries within the four separate decades between 1961 – 2000. Considering our full data set we consistently find that higher inflation is associated with moderate gains in GDP growth up to a roughly 15 – 18 percent inflation threshold. However, the findings diverge when we divide our …
2005-11 Milton Friedman And The Evolution Of Macroeconomics, David Laidler
2005-11 Milton Friedman And The Evolution Of Macroeconomics, David Laidler
Economic Policy Research Institute. EPRI Working Papers
No abstract provided.
A Reappraisal Of The Inflation-Unemployment Tradeoff, Marika Karanassou, Hector Sala, Dennis Snower
A Reappraisal Of The Inflation-Unemployment Tradeoff, Marika Karanassou, Hector Sala, Dennis Snower
Dennis Snower
This paper offers a reappraisal of the inflation-unemployment tradeoff, based on "frictional growth", describing the interplay between nominal frictions and money growth. Whe the money supply growth in the presence of price inertia (due to staggered wage contracts with time discounting), the price adjustments to each successive change in the money supply are never able to work themselves out fully. In this context, temporary nominal rigidities let monetary policy have permanent real effects. Although our theory contains no money illusion, no permanent nominal rigidities, and no departure from rational expectations, there is a long-run inflation-unemployment tradeoff. Our empirical analysis suggests …
Can Macroeconomic Policy Stimulate Private Investment In South Africa? New Insights From Aggregate And Manufacturing Sector-Level Evidence, Léonce Ndikumana
Can Macroeconomic Policy Stimulate Private Investment In South Africa? New Insights From Aggregate And Manufacturing Sector-Level Evidence, Léonce Ndikumana
Economics Department Working Paper Series
This study explores the determinants of investment using both aggregated industry-level data and disaggretated data on 27 sub-sectors of the manufacturing sector for the period 1970-2001. According to the results in this study, the government has potentially powerful means at its disposal to stimulate private investment. In particular, a domestic demand stimulus and public investment expansion will produce large gains in private investment. While the direct effects of lowering the interest rate appear to be quantitatively small, indirect effects operating notably through domestic demand and cheaper credit are likely to be large. The evidence in this study also indicates that …
Policy Effects In The Post Boom U.S. Economy, Ray C. Fair
Policy Effects In The Post Boom U.S. Economy, Ray C. Fair
Cowles Foundation Discussion Papers
The paper analyzes the question why the U.S. economy in the 2000:4-2004:3 period was sluggish in light of the large expansionary fiscal and monetary policies that took place. The answer does not appear to be that there were large structural changes in the economy or systematic bad shocks. This paper tests for such changes and shocks, and the results are generally negative. Instead, the main culprits seem to be large negative effects from declines in the stock market and exports. Although not tested in this paper, some of the decline in exports may be the result of the stock market …
Discussion: Narrow Money, Broad Money, And The Transmission Of Monetary Policy, Gregory Hess
Discussion: Narrow Money, Broad Money, And The Transmission Of Monetary Policy, Gregory Hess
CMC Faculty Publications and Research
Monetary policy and theory have been greatly transformed since Dale Henderson, Richard Porter, and Peter Tinsley (HPT) first crossed the Board's threshold more than thirty years ago. Judging from the sustained levels of robust growth and moderate rates of inflation in the United States since the early 1980s, both theory and policy have moved in a welfare-improving direction. The dramatic evolution of monetary policy during HPT's tenure simply cannot be overstated. A revolution took place during their watch, and as the custodians and facilitators of research at the Federal Reserve Board, these three amigos should certainly take some credit.
Feasibility And Timing Of The Euro Adoption By The New Eu Member States, Lucjan Orlowski
Feasibility And Timing Of The Euro Adoption By The New Eu Member States, Lucjan Orlowski
WCBT Faculty Publications
The 10 new member states are now facing the challenge of framing and implementing policies for adopting the euro. They are all bound by the EU Treaty to replace their national currencies with the euro at some future time as they were admitted to the Union with a derogation to this effect. In order to prepare adequately for entry to the euro area, the candidates need to undergo fiscal and monetary convergence. In principle, they should refrain from lax fiscal policies that could skew the eurozone policy mix by forcing the European Central Bank (ECB) to tighten monetary policy. They …