Is the ECB’s conventional monetary policy state‐dependent? An event study approach

Monetary Policy : An Institutionalist Approach

Conventional and Unconventional Monetary Policy

The authors extend a standard New Keynesian model to incorporate heterogeneity in spending opportunities and two sources of (potentially time-varying) credit spreads and to allow a role for the central bank’s balance sheet in equilibrium determination. They use the model to investigate the implications of imperfect financial intermediation for familiar monetary policy prescriptions, and to cons...

The Australian Government’s Current Approach to Monetary Policy: An Evaluation

Consistent with the conservative approach that characterises the behaviour of central banks worldwide, recent changes in the Reserve Bank’s approach to monetary policy have been instituted gradually. A typical change might begin with small changes of wording in statements emanating from the Bank, before being reinforced in informal public utterances and then finally acquiring the mantle of ‘Ban...

Unconventional Monetary Policy and the Dollar: Conventional Signs, Unconventional Magnitudes

We examine the effects of unconventional monetary policy surprises on the value of the dollar using high-frequency intraday data and contrast them with the effects of conventional policy tools. Identifying monetary policy surprises from changes in interest rate future prices in narrow windows around policy announcements, we find that monetary policy surprises since the Federal Reserve lowered i...

Monetary Policy Reaction Functions in Iran: An Extended Kalman Filter Approach

Estimates of instrumental rules can be utilized to describe central bank's behavior and monetary policy stance. In the last decade, considerable attention has been given to time-varying parameter (TVP) specification of monetary policy rules. Constant-parameter reaction functions likely ignore the impact of model uncertainty, shifting preferences and nonlinearities of policymaker's choices. This...