This paper studies the nature of monetary policy with …nancial intermediaries that provide loans for working capital in a cash-in-advance model with indivisible labor. Monetary policy occurs through money injections either directly to families or to …nancial intermediaries. Injections to families produce an in‡ation tax while injections directly to …nancial intermediaries provide an in‡ation su...

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The aim of the present study is to detect the chaotic behavior in monetary economic relevant dynamical system. The study employs three different forms of Taylor rules: current, forward, and backward looking. The result suggests the existence of the chaotic behavior in all three systems. In addition, the results strongly represent that using expectations in policy rule especially rational expect...

The paper considers a simple model in which monetary and …scal policies are formally independent, but still interdependent through spillovers of macroeconomic outcomes. It shows that the average equilibrium levels of in‡ation, de…cit, debt, and output depend on the two policies’ (i) potency (elasticity of output with respect to the policy instruments); (ii) ambition (the level of their output t...

Reliable measures of the size and direction of changes in monetary policy are very crucial for examining the effects of monetary policy on the economy. Monetary Condition Index (MCI) can be used as a tool to assess the stance of monetary policy. This index is defined as the weighted average of different monetary transmission mechanism relative to their values in a base period. The weights in MC...

in this research, potential effects of oil and monetary policy shocks on economic growth of iran are examined and share of each of them on economic growth are calculated during 1974-2006 period and potential mutual effects of those shocks by using the vector auto regressive (var) model are analysed. results of this research show that oil shocks significantly affected the economic growth in iran...

a r t i c l e i n f o Keywords: Loss aversion Downward housing price rigidity Monetary policy Threshold error correction model Asymmetric adjustment Previous studies have discovered the defensive characteristics of housing prices, which is also known as downward price rigidity. This paper discusses whether this feature would result in an asymmetric relationship between housing prices and moneta...

The purpose of this paper is to discuss the choice between an exchange rate target and an inflation target for Norway. The paper also contains a brief discussion of the objectives of monetary policy and of an optimal delegation of monetary policy in a representative democracy, which serves to place this choice in a broader context. 1 Monetary policy goals Let me start from the presumption that ...

This paper studies the interaction between monetary and macro-prudential policies in a simple model with both nominal and financial frictions. The nominal friction gives rise to a conventional monetary policy objective emphasized in the New Keynesian literature. The financial friction, in the form of an occasionally binding collateral constraint, gives rise to a financial stability objective. ...