The ultimate goal of monetary policy is to achieve price stability and high output. In this regard, central banks usually change the interest rate, liquidity, and money base in order to apply monetary policies. The John B. Taylor rule is one of the rules known in the transmission of monetary policy.[1] Based on this rule and given the output gap and inflation gap, the central bank increases or ...

This paper reviews the monetary policy in Japan during the “great recession.” The paper focuses especially on the conduct of monetary policy when the ZIRP (zero interest rate policy) was in place. The nominal call rate was virtually zero, but we find the monetary policy was not that expansionary in some other dimensions. We examine the long-run relation between the real M2+CD and the real GDP, ...

The present paper analyzes the effects of ECB monetary policy on the Spanish stock market returns. The data sample run all over the euro period: from January 1999 to December 2014. This period is split into two well-defined sub-periods based on the structural change brought about by the financial crisis in August 2007. Spanish stock market returns are approximated by the returns of the selectiv...

this research follows two aims in case of the iranian economy. first, study of the presence of inflation persistency, and second, looking for an optimal monetary policy rule. results show that inflation in the economy of iran is persistent, in which, short-term and long-term effects of monetary policy should be considered. for this purpose, a loss function for the central bank with arguments of...

a r t i c l e i n f o JEL classification: C11 E32 E52 Keywords: New Keynesian models Small open economy Monetary policy Taylor rules Bayesian methods Using the Bayesian approach, a small open economy DSGE model was estimated using a sample of quarterly data for three Central and Eastern Europe economies, Czech Republic, Hungary and Poland. The hypothesis that central banks react to exchange rat...

In this paper, we perform an empirical comparison of Italian and U.S. business cycles. After filtering the time series of the main macroeconomic variables of the two countries, through an approximate bandpass filter, we analyze the cross-correlations between each filtered variable and the filtered GDP, indicator of the business cycle. We find heterogeneity in business cycle dynamics as regards ...

The ECB and the Eurosystem should normally take asset-price movements and potential asset-price bubbles into account only to the extent these are deemed to have an impact on the in‡ation and output-gap forecasts that should guide monetary policy. Asset prices should not be separate target variables, additional to in‡ation and the output gap. The explicit or implicit objective of …nancial stabil...

Monetary policy uncertainty affects the transmission of monetary shocks to longer-term nominal and real yields. For a given shock, reaction yields is more pronounced when level low. Primary dealers other investors adjust their interest rate positions low than high. These portfolio adjustments likely explain larger pass-through shock bond findings shed new light on role that plays in financial m...