The main objective of monetary policy1 is to protect the value of the currency. This task is complicated by the long and variable lags between changes in the monetary policy stance and its ultimate effect on inflation. The delay between changes in monetary policy and their full effect on inflation could be as long as two and a half years. This means that monetary policy decisions have to be for...

This paper investigates core inflation defined as the best predictor of inflation. I compare forecasts obtained using the mean, weighted median, trimmed mean, and less food and energy inflation rates for the consumer price index and the personal consumption expenditure deflator for the current U.S. monetary policy regime. Another issue addressed is that of the systematic bias that exists due to...

We consider evaluating the UK Monetary Policy Committee’s inflation density forecasts using probability integral transform goodness-of-fit tests and measures related to a decision/cost based approach. In implementing the decision-based approach a number of difficulties arise in the absence of full information on payoffs, and when the actual and forecast inflation probabilities may depend on the...

this paper provides a critical review of the demand for money estimation. in doing so, first we explain the main effective factors on the demand for money on the light of monetarists, which those are: transaction demand for money and opportunity cost of holding money. then i have done a short report about the existing studies on the demand for money in the iranian economy and have a special att...

business of goods is one of the necessities of social life. man has produced the money to facilitate the business, which simultaneously with the development of social and economic life has taken different forms. intrinsic value of some money and relative value of the other and the role of the inflation in decrease in value of money cause the different religious commandments. that is why, for co...