nep-mon New Economics Papers
on Monetary Economics
Issue of 2006‒07‒15
forty papers chosen by
Bernd Hayo
Philipps-University Marburg
  1. Optimising Microfoundations for Inflation Persistence By Richard Mash
  2. Monetary Policy and the Distribution of Money and Capital By Miguel Molico
  3. The relative importance of Term Spread, Policy Inertia and Persistent Monetary Policy Shocks in Monetary Policy Rules By Ramón Maria-Dolores; Jesus Vazquez
  4. Monetary Policy and the Term Structure of Interest Rates By Federico Ravenna
  5. Monetary regime choice in the accession countries - a theoretical analysis By Anna Lipinska
  6. A Search Model of Unemployment and Inflation By Etienne Lehmann
  7. Wicksell at the Bank of Canada By Kevin Clinton
  8. New Evidence on the Puzzles: Monetary Policy and Exchange Rates By Almuth Scholl; ; Harald Uhlig
  9. The Independent Monetary Policy under the Fixed Exchange Regime By Gang Gong; William Goffe
  10. Money and Swedish Inflation Reconsidered By Ansgar Belke; Thorsten Polleit
  11. Monetary Policy with Heterogeneous Agents and Credit Constraints By Xavier Ragot; Yann Algan
  12. Euro area inflation persistence in an estimated nonlinear By Gianni Amisanoa
  13. Monetary Policy and the Illusionary Exchange Rate Puzzle By Hilde C. Bjørnland; University of Oslo
  14. Optimal Monetary Policy in a Small Open Economy with Home Bias By Ester Faia
  15. Relative Price Distortion and Optimal Monetary Policy in Open Economies By Jinill Kim
  16. Caution or Activism? Monetary Policy Strategies in an Open Economy By Lucio Sarno; Martin Ellison; University of Warwick
  17. Regional Inflation Dynamics within and across Euro Area and a Comparison with the US By Guenter Beck; Kirstin Hubrich
  18. Monetary Policy Switch, the Taylor Curve, and the Great Moderation By Efrem Castelnuovo
  19. Monetary Policy under Balance Sheet Uncertainty By Saki Bigio; Marco Vega
  20. Optimal Monetary Policy under Adaptive Learning By Vitor Gaspar
  21. Optimal Monetary Policy Response to Distortionary Tax Changes By Michael Krause
  22. Optimal Monetary Policy when Agents are Learning By Krisztina Molnar
  23. The term structure of inflation risk premia and macroeconomic dynamics By Peter Hördahl
  24. The Spectre of Deflation: A Review of Empirical Evidence By Gregor W. Smith
  25. Three Lectures on Monetary Theory and Policy: Speaking Notes and Background Papers By David Laidler
  26. The money-age distribution: Empirical facts and economic modelling By Burkhard Heer
  27. Oil Price Shocks, Monetary Policy Rules and Welfare. By Fiorella de Fiore
  28. The discounted economic stock of money with VAR forecasting By William A. Barnett; U. of Kansas
  29. Time-Varying U.S. Inflation Dynamics and the New Keynesian Phillips Curve By Kevin J. Lansing
  30. Sticky Prices vs. Limited Participation:What Do We Learn From the Data? By Niki Papadopoulou
  31. Forecasting Inflation: the Relevance of Higher Moments By Jane M. Binner
  32. The Great Moderation and the ‘Bernanke Conjecture’ By Luca Benati; Bank of England
  33. Recursive Thick Modeling and the Choice of Monetary Policy in Mexico By Arnulfo Rodriguez; Banco de México
  34. The Coordination Channel of Foreign Exchange Intervention By Stefan Reitz; M.P Taylor
  35. Inflation Globalization and the Fall of Country Specific Fluctuations By Haroon Mumtaz
  36. How the ECB and the US Fed Set Interest Rates By Ansgar Belke; Thorsten Polleit
  37. On the Expectations Hypothesis in US Term Structure By Erdenebat Bataa
  38. Speculative Hyperinflations: When Can We Rule Them Out? By Oscar J. Arce
  39. Learning to Forecast the Exchange Rate: Two Competing Approaches. By Paul De Grauwe
  40. Euro-Dollar Real Exchange Rate Dynamics in an Estimated Two-Country Model By Pau Rabanal
  1. By: Richard Mash (Oxford University)
    Keywords: Monetary policy, Phillips curve, Inflation Persistence, Microfoundations
    JEL: E52 E58 E22
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:457&r=mon
  2. By: Miguel Molico (Bank of Canada; University of Western Ontario)
    Keywords: search, money, capital, monetary policy, redistribution, wealth
    JEL: E40 E50
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:136&r=mon
  3. By: Ramón Maria-Dolores; Jesus Vazquez
    Keywords: NKM model, term structure, monetary policy rule
    JEL: C32 E30 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:6&r=mon
  4. By: Federico Ravenna (University of California)
    Keywords: Term Structure of Interest Rates, Monetary Policy, Sticky Prices, Habit Persistence, Expectations Hypothesis.
    JEL: E43 E52 G12
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:197&r=mon
  5. By: Anna Lipinska (IDEA Universitat Autonoma de Barcelona)
    Keywords: monetary regime choice, real exchange rate dynamics, accession economies
    JEL: F41 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:243&r=mon
  6. By: Etienne Lehmann (ERMES (CNRS and University of Paris 2 Panthéon Assas) and IZA Bonn)
    Abstract: In this paper, I introduce money in the standard labor-matching model (Mortensen and Pissarides 1999, Pissarides 2000). A double coincidence problem makes Fiat Money necessary as a medium of exchange. In the long-run, a rise in the rate of money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal monetary growth rate decreases with the workers’ bargaining power, the level of unemployment benefits and the payroll tax rate.
    Keywords: inflation, unemployment, search-matching, Friedman rule
    JEL: E24 E52 J64
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2194&r=mon
  7. By: Kevin Clinton (Queen's University)
    Abstract: Wicksell, writing around the start of the 20th century, outlined an approach to monetary policy strikingly similar to the modern approach, of which the Bank of Canada has been a pioneer. Its features include: the overriding objective of price stability (or low inflation); an interest rate instrument controlled by the rates on settlement balances at the central bank; and a policy rule under which the instrument varies in response to deviations from the objective. Wicksell’s natural rate of interest has resurfaced as the neutral rate in mainstream macroeconomic models; and his description of the inflation process has parallels in the modern Phillips curve. Moreover, in a mandate for price stability, one can find a logical basis for the independence and accountability of central banks. The paper tries to explain why Wicksell’s ideas fell by the wayside for a century, and describes how the Bank of Canada, by pragmatic steps in the 1990s, helped reinvent Wicksell, and install a neo-Wicksellian monetary policy.
    Keywords: Wicksell, central bank, monetary policy, Bank of Canada
    JEL: E42 E52 E58
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:qed:wpaper:1087&r=mon
  8. By: Almuth Scholl; ; Harald Uhlig
    Keywords: vector autoregressions, agnostic identification, forward discount bias puzzle, exchange rate puzzle, monetary policy
    JEL: C32 E58 F31
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:5&r=mon
  9. By: Gang Gong (Tsinghua University); William Goffe (Economics SUNY Oswego)
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:517&r=mon
  10. By: Ansgar Belke; Thorsten Polleit
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:hoh:hohdip:270&r=mon
  11. By: Xavier Ragot; Yann Algan
    Keywords: monetary policy, Credit constraints, Welfare
    JEL: E2 E5
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:292&r=mon
  12. By: Gianni Amisanoa
    Keywords: DSGE models, policy rules, inflation persistence, second order approximations,
    JEL: C11 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:347&r=mon
  13. By: Hilde C. Bjørnland; University of Oslo
    Keywords: Dornbusch overshooting, VAR, monetary policy, exchange rate puzzle, identification.
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:45&r=mon
  14. By: Ester Faia (Pompeu-Fabra University)
    Keywords: Optimal Monetary Policy, Ramsey Planner, Home Bias, Sticky Prices
    JEL: E52 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:521&r=mon
  15. By: Jinill Kim (Federal Reserve Board)
    Keywords: Cost-Push Shocks; Relative Price Distortion; Interdependence; Open Economy; Optimal Policy
    JEL: E52 F33 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:211&r=mon
  16. By: Lucio Sarno (Universty of Warwick); Martin Ellison; University of Warwick
    Keywords: open economy; learning; monetary policy
    JEL: D83 E52 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:214&r=mon
  17. By: Guenter Beck (Goethe University Frankfurt); Kirstin Hubrich
    Keywords: regional inflation dynamics, euro area and US, common factor models
    JEL: E31 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:338&r=mon
  18. By: Efrem Castelnuovo (Economics University of Padua)
    Keywords: Taylor principle, Taylor curve, new Keynesian model, indeterminacy, persistence
    JEL: E30 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:59&r=mon
  19. By: Saki Bigio (Econometric Modelling Unit Central Bank of Peru); Marco Vega (LSE)
    JEL: C11 C61 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:157&r=mon
  20. By: Vitor Gaspar (Banco de Portugal)
    Keywords: Optimal Policy, Adaptive Learning, Rational Expectations, Policy Rules
    JEL: E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:183&r=mon
  21. By: Michael Krause (Department of Economics Deutsche Bundesbank)
    Keywords: Nominal and real rigidities, distortionary taxation, optimal monetary policy
    JEL: E52 E63
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:306&r=mon
  22. By: Krisztina Molnar
    Keywords: Optimal Monetary Policy, Learning, Rational Expectations
    JEL: C62 E0
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:40&r=mon
  23. By: Peter Hördahl (European Central Bank)
    Keywords: Term structure of interest rates, risk premia, policy rules
    JEL: E43 E44
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:203&r=mon
  24. By: Gregor W. Smith (Queen's University)
    Abstract: What explains the widespread fear of deflation? This paper reviews the history of thought, economic history, and empirical evidence on deflation, with a view to answering this question. It also outlines informally the main effects of deflation in applied monetary models. The main finding is that -- for both historical and contemporary deflations -- there are many open, empirical questions that could be answered using the tools economists use to study inflation and monetary policy more generally.
    Keywords: deflation
    JEL: E31
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:qed:wpaper:1086&r=mon
  25. By: David Laidler
    Abstract: In order to promote the exchange of ideas and to support its own research capacity, the Oesterreichische Nationalbank regularly invites internationally renowned economists for short guest professorships. This year, from June 12 -14 2006, David Laidler gave three public lectures on topics related to monetary theory and monetary policy. The first lecture was on “Monetary Policy and the Austrians”, the second on “The Rise and Fall of Monetarism” and the third has dealt with the question “Is there a Role for Money in Monetary Policy in the 21st Century?”. The lectures were based on three background papers, which are contained in this OeNB Working Paper that also includes the lecture notes that were prepared for the lecture series.
    Date: 2006–06–19
    URL: http://d.repec.org/n?u=RePEc:onb:oenbwp:128&r=mon
  26. By: Burkhard Heer (Free University of Bolzano)
    Keywords: Money-age distribution, money demand
    JEL: E41 E31 D30
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:191&r=mon
  27. By: Fiorella de Fiore
    Keywords: oil price shocks; montary policy; fiscal policy; DSGE
    JEL: E32 E52 E63 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:402&r=mon
  28. By: William A. Barnett; U. of Kansas
    Keywords: Monetary aggregation, discounted economic capital stock, VAR, robustness, capital asset pricing
    JEL: E41 G12 C43 C22
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:51&r=mon
  29. By: Kevin J. Lansing (Federal Reserve Bank of San Francisco)
    Keywords: Inflation Expectations, Phillips Curve, Time-Varying Persistence and Volatility
    JEL: E31 E37
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:488&r=mon
  30. By: Niki Papadopoulou (Central Bank of Cyprus; University of Cyprus)
    Keywords: Estimating DSGE, Sticky Prices, Limited Participation, Monetary Policy
    JEL: C5 E3 E4 E5
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:418&r=mon
  31. By: Jane M. Binner (Aston University)
    Keywords: relative price distribution, higher moments, out-of-sample inflation forecasting
    JEL: C22 C43 E27
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:407&r=mon
  32. By: Luca Benati; Bank of England
    Keywords: Great Inflation, indeterminacy, structural break tests; frequency domain, VARs.
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:158&r=mon
  33. By: Arnulfo Rodriguez (Economic Studies Division Bank of Mexico); Banco de México
    Keywords: model uncertainty, optimal control, out-of-bag, thin modeling and thick modeling
    JEL: C61 E61
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:30&r=mon
  34. By: Stefan Reitz (Economics Deutsche Bundesbank); M.P Taylor
    Keywords: foreign exchange intervention; market microstructure; nonlinear mean reversion
    JEL: C10 F31 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:16&r=mon
  35. By: Haroon Mumtaz (monetary assessment and strategy Bank of England)
    Keywords: international inflation, world and country factors,great moderation
    JEL: E30 E52
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:166&r=mon
  36. By: Ansgar Belke; Thorsten Polleit
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:hoh:hohdip:269&r=mon
  37. By: Erdenebat Bataa (Economics University of Manchester)
    Keywords: expectations hypothesis; term structure of interest rates; vector autoregression
    JEL: G10 E43
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:508&r=mon
  38. By: Oscar J. Arce (Resarch Banco de España)
    Keywords: price level indeterminacy, fiscal and monetary interactions, fiscal theory of the price level
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:376&r=mon
  39. By: Paul De Grauwe (KULeuven)
    Keywords: Exchange Rate Economics, Adaptive Learning, Behavioral Finance
    JEL: F31 F41
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:367&r=mon
  40. By: Pau Rabanal (IMF)
    Keywords: Real Exchange Rates, Bayesian Estimation, Model Comparison.
    JEL: F41 C11
    Date: 2006–07–04
    URL: http://d.repec.org/n?u=RePEc:sce:scecfa:87&r=mon
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