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Displaying results 1 to 6 of 6.

  1. Reading between the lines
    uncovering asymmetry in the central bank loss function
    Published: 12 June 2024
    Publisher:  Bank of Finland, Helsinki

    We depart from the common reaction function-based approach used to infer central bank preferences. Instead, we extract the tone from the textual information in the central bank communication using both a lexicon-based approach and a language model.... more

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 685
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    We depart from the common reaction function-based approach used to infer central bank preferences. Instead, we extract the tone from the textual information in the central bank communication using both a lexicon-based approach and a language model. We combine the tone with real-time information available to the monetary policy decision-maker and directly estimate the loss function. We find strong and robust evidence of asymmetry in the case of the European Central Bank during 1999-2021: the slope of the loss function was roughly three times steeper when inflation exceeded the target compared to when it was below the target. This represents a significant departure from the quadratic and symmetric monetary policy loss function typically applied in macro models.

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/298852
    Series: Bank of Finland research discussion papers ; 2024, 6
    Subjects: central bank communication; textual analysis; language models; asymmetric loss function; optimal monetary policy
    Scope: 1 Online-Ressource (circa 95 Seiten), Illustrationen
  2. Optimal quantitative easing and tightening
    Published: [2024]
    Publisher:  Bank of England, London

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    VS 443
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: Staff working paper / Bank of England ; no. 1063 (March 2024)
    Subjects: Quantitative easing; quantitative tightening; optimal monetary policy; zero lower bound
    Scope: 1 Online-Ressource (circa 80 Seiten), Illustrationen
  3. Strike while the iron is hot
    optimal monetary policy with a nonlinear Phillips curve
    Published: September 2024
    Publisher:  CESifo, Munich, Germany

    We study the Ramsey optimal monetary policy within the Golosov and Lucas (2007) state-dependent pricing framework. The model provides micro-foundations for a nonlinear Phillips curve: the sensitivity of inflation to activity increases after large... more

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    DS 63
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    We study the Ramsey optimal monetary policy within the Golosov and Lucas (2007) state-dependent pricing framework. The model provides micro-foundations for a nonlinear Phillips curve: the sensitivity of inflation to activity increases after large shocks due to an endogenous rise in the frequency of price changes, as observed during the recent inflation surge. In response to large cost-push shocks, optimal policy leverages the lower sacrifice ratio to reduce inflation and stabilize the frequency of price adjustments. When facing total factor productivity shocks, an efficient disturbance, the optimal policy commits to strict price stability, similar to the prescription in the standard Calvo (1983) model.

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/305614
    Edition: This version: September 19, 2024
    Series: CESifo working papers ; 11372 (2024)
    Subjects: state-dependent pricing; large shocks; nonlinear Phillips curve; optimal monetary policy
    Scope: 1 Online-Ressource (circa 80 Seiten), Illustrationen
  4. The macroprudential role of central bank balance sheets
    Published: March 2024
    Publisher:  Bank for International Settlements, Monetary and Economic Department, [Basel]

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    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    VS 546
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: BIS working papers ; no 1173
    Subjects: optimal monetary policy; central bank balance sheet; government debt; reserves; financial frictions; macroprudential
    Scope: 1 Online-Ressource (circa 35 Seiten), Illustrationen
  5. Monetary policy with profit-driven inflation
    Published: February 2024
    Publisher:  Bank for International Settlements, Monetary and Economic Department, [Basel]

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    VS 546
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Series: BIS working papers ; no 1167
    Subjects: energy price shocks; price stickiness; reservation profits; optimal monetary policy; corporate tax
    Scope: 1 Online-Ressource (circa 51 Seiten), Illustrationen
  6. Strike while the iron is hot
    optimal monetary policy with a nonlinear Phillips curve
    Published: August 2024
    Publisher:  Bank for International Settlements, Monetary and Economic Department, [Basel]

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    VS 546
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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Edition: This version: August 7, 2024
    Series: BIS working papers ; no 1203
    Subjects: State-dependent pricing; large shocks; nonlinear Phillips curve; optimal monetary policy
    Scope: 1 Online-Ressource (circa 78 Seiten), Illustrationen