The Demand for M3 in the Euro Area (1999)

by Günter Coenen, Juan-Luis Vega, Günter Coenen
Results 1 - 10 of 68

Monetary Policy with Uncertain Parameters

by Ulf Söderström - SCANDINAVIAN JOURNAL OF ECONOMICS , 2000
"... In a simple dynamic macroeconomic model, it is shown that uncertainty about structural parameters does not necessarily lead to more cautious monetary policy, refining the accepted wisdom concerning the effects of parameter uncertainty on optimal policy. In particular, when there is uncertainty about ..."
Abstract - Cited by 111 (2 self) - Add to MetaCart
In a simple dynamic macroeconomic model, it is shown that uncertainty about structural parameters does not necessarily lead to more cautious monetary policy, refining the accepted wisdom concerning the effects of parameter uncertainty on optimal policy. In particular, when there is uncertainty about the persistence of inflation, it may be optimal for the central bank to respond more aggressively to shocks than under certainty equivalence, since the central bank this way reduces uncertainty about the future development of inflation. Uncertainty about other parameters, in contrast, acts to dampen the policy response.

2001, Data uncertainty and the role of money as an information variable for monetary policy. ECB Working Paper, No. 84, forthcoming in the European Economic Review

by Andrew Levin, Volker Wieland, Andrew Levin, Volker Wieland , 2001
"... † The views expressed in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the European Central Bank or the Board of Governors of the Federal Reserve System or any other person associated with the European Central Bank or the Federal Res ..."
Abstract - Cited by 85 (3 self) - Add to MetaCart
† The views expressed in this paper are solely the responsibility of the authors and should not be interpreted as reflecting the views of the European Central Bank or the Board of Governors of the Federal Reserve System or any other person associated with the European Central Bank or the Federal Reserve System.Wieland served as a consultant at the European Central Bank while preparing this paper.We are grateful for helpful comments from Ignazio Angeloni, Patrick Minford, Athanasios Orphanides, Gabriel Peréz Quirós, Raf Wouters, and seminar participants at the Konstanz Seminar on Monetary Theory and Policy, the European Central Bank, the Society for Computational Economics conference in Yale 2001 and the Federal Reserve Board.We also appreciate the excellent research assistance of Andres Manzanares from the European Central Bank. Of course, the authors are responsible for any remaining errors. © European Central Bank, 2001 Address Kaiserstrasse 29 D-60311 Frankfurt am Main

The Monetary Transmission Mechanism in the Euro Area: More Evidence from the VAR Analysis

by Gert Peersman, Frank Smets, Working Orking, P Ppaper, Frank Frank, Frank Smets , 2001
"... Non-technical summary 5 1 ..."
Abstract - Cited by 75 (4 self) - Add to MetaCart
Non-technical summary 5 1

3 “Estimating the trend of M3 income velocity underlying the reference value for monetary growth” by

by Claus Brand, Dieter Gerdesmeier, Barbara Roffia, Claus Brand, Dieter Gerdesmeier, Barbara Roffia , 2002
"... 411 144 ecb d All rights reserved. Photocopying for educational and non-commercial purposes permitted provided that the source is acknowledged. ISSN 1607-1484Table of contents Abstract 5 1 Introduction: general aspects of the reference value for monetary growth in the context of the ECB’s monetary p ..."
Abstract - Cited by 65 (0 self) - Add to MetaCart
411 144 ecb d All rights reserved. Photocopying for educational and non-commercial purposes permitted provided that the source is acknowledged. ISSN 1607-1484Table of contents Abstract 5 1 Introduction: general aspects of the reference value for monetary growth in the context of the ECB’s monetary policy strategy 7 2 A first look at the data 10 2.1 The concept of M3 income velocity and its behaviour in the euro area 10 2.2 Data and aggregation issues 12

Why Adopt Transparency? The Publication of Central Bank Forecasts”, working paper

by Petra M. Geraats, David Romer, Rich Lyons
"... Transparency has become one of the key features of monetary policy. This paper analyzes the incentives to adopt transparency, focusing on the publication of central bank forecasts. A simple dynamic monetary policy game is considered in which transparency leads to a beneficial reduction of the inflat ..."
Abstract - Cited by 44 (2 self) - Add to MetaCart
Transparency has become one of the key features of monetary policy. This paper analyzes the incentives to adopt transparency, focusing on the publication of central bank forecasts. A simple dynamic monetary policy game is considered in which transparency leads to a beneficial reduction of the inflation bias but need not be desired by every central bank. However, when transparency is endogenous, the negative market feedback associated with secrecy could provide a sufficiently strong inducement for all central banks to adopt transparency.

2001): ” Money in an Estimated Business Cycle Model of the Euro Area,” Banco de España WP 0121

by Javier Andrés, J. David, López-salido Javier Vallés, Banco De España
"... We present maximum likelihood estimates of a small scale dynamic general equilibrium model for the euro area. We pay special attention to the role of money, both through its direct e¤ect upon private agents ’ decisions and as a component of the monetary policy rule. Our results can be summarised as ..."
Abstract - Cited by 40 (2 self) - Add to MetaCart
We present maximum likelihood estimates of a small scale dynamic general equilibrium model for the euro area. We pay special attention to the role of money, both through its direct e¤ect upon private agents ’ decisions and as a component of the monetary policy rule. Our results can be summarised as follows. First, we …nd no direct e¤ect of money upon in‡ation and output but money growth plays a signi…cant role in the interest rate rule. Second, money demand shocks mainly help to forecast real balances while real shocks explain the bulk of price, output and interest rates ‡uctuations. Finally, the systematic response of monetary policy implies a path for real interest rates close to that followed by the natural rate of interest. We thank Jordi Galí and Gabriel Pérez-Quiros for their comments. Special thanks go to Peter Ireland for providing us with his estimation programs. The views expressed here are those of the authors and do not represent the view of the Banco de España.

Investigating M3 money demand in the euro area. New evidence based on standard models, DIW Discussion Paper 561

by Christian Dreger, Jürgen Wolters , 2006
"... www.diw.de ..."
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www.diw.de

Does Monetary Policy Have Asymmetric Effects? A Look at the . . .

by Eugenio Gaiotti, A A Look, Look At, T The, The Investment, Eugenio Eugenio, Gaio Gaiotti, Andrea Andrea Generale, Bank Of Italy, Working Orking, Working Orking, P Ppaper, P Ppaper, Andrea Andrea, Generale Generale , 2001
"... Non-technical summary 5 1. ..."
Abstract - Cited by 19 (2 self) - Add to MetaCart
Non-technical summary 5 1.

Global liquidity and asset prices in a cointegrated VAR.

by Julia V Giese , Christin K Tuxen , 2007
"... Abstract This paper investigates the relationship between money/liquidity and asset prices on a global scale: To what extent is global liquidity important? How are interest rates affected by global monetary conditions? And how does this affect the ability of central banks to control inflation? We f ..."
Abstract - Cited by 13 (0 self) - Add to MetaCart
Abstract This paper investigates the relationship between money/liquidity and asset prices on a global scale: To what extent is global liquidity important? How are interest rates affected by global monetary conditions? And how does this affect the ability of central banks to control inflation? We find evidence for a surge in global liquidity beginning in 2001, which has raised inflation rates and house prices, but has had limited effects on share prices. Furthermore, policy rates have indeed been unusually low given inflation levels.
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Global Monetary Policy Shocks in the G5: A SVAR Approach. CFS Working Paper 2006/30, Frankfurt a. M

by Joao Miguel Sousa, Andrea Zaghini , 2006
"... The paper constructs a global monetary aggregate, namely the sum of the key monetary aggregates of the G5 economies (US, Euro area, Japan, UK, and Canada), and analyses its indicator properties for global output and inflation. Using a structural VAR approach we find that after a monetary policy shoc ..."
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The paper constructs a global monetary aggregate, namely the sum of the key monetary aggregates of the G5 economies (US, Euro area, Japan, UK, and Canada), and analyses its indicator properties for global output and inflation. Using a structural VAR approach we find that after a monetary policy shock output declines temporarily, with the downward effect reaching a peak within the second year, and the global monetary aggregate drops significantly. In addition, the price level rises permanently in response to a positive shock to the global liquidity aggregate. The similarity of our results with those found in country studies might supports the use of a global monetary aggregate as a summary measure of worldwide monetary trends.