Report
Interest rate pegs and the reversal puzzle: On the role of anticipation
| العنوان: | Interest rate pegs and the reversal puzzle: On the role of anticipation |
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| المؤلفون: | Gerke, Rafael, Giesen, Sebastian, Kienzler, Daniel |
| بيانات النشر: | Deutsche Bundesbank |
| سنة النشر: | 2020 |
| المجموعة: | EconStor (German National Library of Economics, ZBW) |
| مصطلحات موضوعية: | ddc:330, E32, E52, Interest rate peg, Reversal puzzle, Regime-switching model |
| الوصف: | We revisit the reversal puzzle: A counterintuitive contraction of inflation in response to an interest rate peg. We show that it is intimately related to the degree of agents' anticipation. If agents perfectly anticipate the peg, reversals occur depending on the duration of the peg. If they do not anticipate the peg, reversals are absent. In the case of imperfect anticipation, implemented by a Markov-switching framework, we measure the degree of anticipation by the frequency of the peg regime. Even if the frequency of the peg takes on a value twice as large as empirically observed, the reversal puzzle is absent. |
| نوع الوثيقة: | report |
| اللغة: | English |
| ردمك: | 978-3-95729-770-9 3-95729-770-2 |
| Relation: | Series: Deutsche Bundesbank Discussion Paper; No. 50/2020; urn:isbn:978-3-95729-770-9; gbv-ppn:1732487456; http://hdl.handle.net/10419/224478; RePEc:zbw:bubdps:502020 |
| الاتاحة: | http://hdl.handle.net/10419/224478 |
| Rights: | http://www.econstor.eu/dspace/Nutzungsbedingungen |
| رقم الانضمام: | edsbas.88226203 |
| قاعدة البيانات: | BASE |
| ردمك: | 9783957297709 3957297702 |
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