nep-cba New Economics Papers
on Central Banking
Issue of 2005‒07‒03
four papers chosen by
Roberto Santillan

  1. Monetary Policy Impulses, Local Output and the Transmission Mechanism By Massimo Caruso
  2. Monetary Policy, Expectations and Commitment By George W. Evans; Seppo Honkapohja
  3. The Contagion Effect of Public Debt on Monetary Policy: The Brazilian Experience By Fernando de Holanda Barbosa
  4. Fleming-Mundell Modell as a Pioneer of 'Open Economy Macroeconomics' (in Turkish) By Aykut Kibritcioglu

  1. By: Massimo Caruso (Banca d'Italia, Sede di Roma, Nucleo per la ricerca economica, via XX Settembre 97/e 00187 Rome ITALY)
    Abstract: This paper evaluates the effects of unanticipated monetary policy shocks on Italian output on the basis of highly disaggregated data and a VAR methodology. The impact of unexpected changes in the money market interest rate on the pattern of industrial production - based on qualitative business opinion survey data - has been computed for 164 local industries. The perceived output effects of monetary impulses go up for local industries with higher investment expenditures, less liquid firms and for industrial sectors that have a higher correlation with the aggregate business cycle. The hypothesis that small firms bear a disproportionate burden of monetary policy does not find support in this sample.
    Keywords: monetary policy shocks, business opinion surveys, heterogeneity
    JEL: E52 E58 R12
    Date: 2004–12
  2. By: George W. Evans (University of Oregon Economics Department); Seppo Honkapohja (University of Cambridge)
    Abstract: This is a revised and shortened version of Working Paper 2002-11. Commitment in monetary policy leads to equilibria that are superior to those from optimal discretionary policies. A number of interest rate reaction functions and instrument rules have been proposed to implement or approximate commitment policy. We assess these rules in terms of whether they lead to an RE equilibrium that is both locally determinate and stable under adaptive learning by private agents. A reaction function that appropriately depends explicitly on private expectations performs particularly well on both counts.
    Keywords: Commitment, interest rate setting, adaptive learning, stability, determinacy
    JEL: E52 E31 D84
    Date: 2002–05–27
  3. By: Fernando de Holanda Barbosa (EPGE/FGV)
    Date: 2005–06
  4. By: Aykut Kibritcioglu (Ankara University)
    Abstract: 'Acik Ekonomi Makroiktisadi'nin Oncusu Olarak Fleming-Mundell Modeli. [Yayinlandigi yer: Iktisat Dergisi, 275: 31-38]
    Keywords: open economy macroeconomics, Mundell-Fleming model, monetary and fiscal policies
    JEL: F41
    Date: 2005–06–21

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