منابع مشابه
Interest Rates, ECB Communication and Inflation Expectations
Guiding and anchoring inflation expectations of the public are key tasks of modern central banks. In this paper we investigate how the European Central Bank (ECB) influences inflation expectations of professional forecasters. We argue that it is a good sign that interest rate changes as such are not significant in explaining inflation expectations: The ECB has been able to prepare professional ...
متن کاملWhy Are Inflation and Real Interest Rates So Low? A Mechanism of Low and Floating Real Interest and Inflation Rates
Real interest and inflation rates have been very low in many industrialized countries since the Great Recession. In this paper, a mechanism of low and floating real interest and inflation rates is examined based on the concept a “Nash equilibrium of a Pareto inefficient path” and the law of motion for trend inflation. I show that, because the link between the marginal product of capital and the...
متن کاملLong-Term Interest Rates and Inflation: A Fisherian Approach
I n recent years, Federal Reserve (Fed) policymakers have come to rely on long-term bond yields to measure the public’s long-term inflationary expectations. The long-term bond rate plays a central role in Goodfriend’s (1993) narrative account of Fed behavior, 1979–1992, which links policyrelated movements in the federal funds rate to changes in the yield on long-term U.S. Treasury bonds. Accord...
متن کاملMonetary Policy, Nominal Interest Rates, and Long-horizon Inflation Uncertainty
Empirical evidence presented in this paper shows that the predictability of inflation at long horizons varies considerably across countries. Both simple theory and empirical evidence suggest that the crucial factor is the extent to which systematic monetary policy succeeds in stabilising the incipient unit root in inflation. The mechanism by which it does this appears however to be complicated ...
متن کاملDo Higher Interest Rates Raise or Lower Inflation?
The standard “new-Keynesian” model accounts well for the fact that inflation has been stable at a zero interest rate peg. However, If the Fed raises nominal interest rates, the same model model predicts that inflation will smoothly rise, both in the short run and long run. This paper presents a series of failed attempts to escape this prediction. Sticky prices, money, backward-looking Phillips ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: American Economic Review
سال: 2001
ISSN: 0002-8282
DOI: 10.1257/aer.91.2.219