Academic Journal
Inflation Target Shocks and Monetary Policy Inertia in the Euro Area
| العنوان: | Inflation Target Shocks and Monetary Policy Inertia in the Euro Area |
|---|---|
| المؤلفون: | Patrick Fèvea, Julien Matheronb, Jean-guillaume Sahucb |
| المساهمون: | The Pennsylvania State University CiteSeerX Archives |
| المصدر: | http://www.idei.fr/doc/wp/2008/inflation.pdf. |
| سنة النشر: | 2008 |
| المجموعة: | CiteSeerX |
| مصطلحات موضوعية: | Permanent inflation target shocks, Monetary policy inertia, DSGE models, Bayesian econometrics JEL Class, E31, E32, E52 |
| الوصف: | The euro area as a whole has experienced a marked downward trend in inflation over the past decades and, concomitantly, a protracted period of depressed activity. Can permanent shifts in monetary policy be held responsible for these dynamics? To answer this question, we embed serially correlated changes in the inflation target into a DSGE model with real and nominal fric-tions. The formal Bayesian estimation of the model suggests that gradual changes in the inflation target have played a major role in the euro area business cycle. Following an inflation target shock, the real interest rate increases sharply and persistently, leading to a protracted decline in economic activity. Counter–factual exercises show that, had monetary policy implemented its new inflation objective at a faster rate, the euro zone would have experienced more sustained growth than it actually did. |
| نوع الوثيقة: | text |
| وصف الملف: | application/pdf |
| اللغة: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.494.151; http://www.idei.fr/doc/wp/2008/inflation.pdf |
| الاتاحة: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.494.151 http://www.idei.fr/doc/wp/2008/inflation.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| رقم الانضمام: | edsbas.6CEBA740 |
| قاعدة البيانات: | BASE |
| الوصف غير متاح. |