The federal funds rate has been stuck at the zero bound for over two years, and the Fed has instead resorted to unconventional monetary policies, such as large scale asset purchases to provide stimulus to the economy. This paper uses a structural VAR to identify the e¤ects of monetary policy shocks on the con…guration of interest rates during this period. The VAR is identi…ed using the assumpti...

We assess the cyclicality of fiscal policy in 19 Euro area countries, notably during recessions, for period 1995–2020. use a time-varying measure to describe developments. The results suggest that recessions discretionary becomes more pro-cyclical, but overall budget balance counter-cyclical. Hence, pursuing Ricardian regime by indebted countries leads higher counter-cyclicality policy. Governm...

the history of monetary policy in iran, judging by their performance in keeping the value of the currency, maintaining a steady growth in the gross domestic product, faltering investment, show that monetary policy has not been a portrait of consistent successes, to say the least. as a result of the recent studies two rules have emerged as guideline for policy makers: taylor rule and mccallum ru...

the most important objectives of monetary policy are to provide price stability, economic growth and favorable employment levels. since achieving these goals is not directly accessible for policy makers, so introducing and studying the appropriate tools and intermediate targets seem necessary. for this reason, this paper tries to answer this question: whether can we introduce an appropriate rul...

Over the last decades the research on monetary policy has largely concentrated on the impact of monetary authorities’ decisions on inflation and the fine-tuning of the macroeconomic, so that distributional effects of monetary policy which are non-trivial has been ignored. A view that has become increasingly popular since the financial crisis 2008 is that expansionary monetary policy can exacerb...

a r t i c l e i n f o JEL classification: C22 E44 F31 Keywords: Monetary shocks Asymmetric effects MSVAR–EGARCH In this paper, we study the effect of monetary shocks on the Chinese stock market over the period of 2005 to 2011 with the MSVAR–EGARCH model. The evidence suggests that Chinese monetary policies have significantly asymmetric effects on the stock market in different time periods and m...

Hiring is a costly activity reflecting firms' investment in their workers. Microdata show that hiring costs involve production disruption. Thus, cyclical fluctuations the value of output, induced by price frictions, have consequences for optimal allocation activities. We outline mechanism based on markup fluctuations, placing emphasis frictions interacting with frictions. This generates strong ...

Abstract This study uses annual data over the period 2005-2014 and the Panel VECM approach to examine financial inclusion and monetary policy effectiveness in Africa. The study shows that financial inclusion and monetary policy effectiveness are linked by a set of long-run relationships. Policy reaction to the positive financial inclusion shock is not significant. Policy reaction to the posit...

T here is always uncertainty about the soundness of an economic model’s structure and parameters. Therefore, central banks normally face with uncertainty about the key economic explanatory relationships. So, policymaker should take into account the uncertainty in formulating monetary policies. The present study is aimed to examine robust optimal monetary policy under uncertainty, by ...

This paper aims to investigate the role of each aggregate spending component in the monetary policy transmission in Indonesia. It assesses the relative strength of the role of each spending component in the monetary policy transmission. In so doing, this study employs the contribution analysis, which is calculated based on the cumulative impulse response of each component of GDP to a monetary p...