scholarly journals The impact of inflation targeting: Testing the good luck hypothesis

2021 ◽  
Author(s):  
Federico Ravenna ◽  
Marcus M⊘lbak Ingholt
Keyword(s):  
Inflation Targeting ◽  
Good Luck ◽  
The Impact

Monetary policy and the effect of the transfer of oil prices to inflation

2020 ◽  
pp. 41-50
Author(s):  
Ph. S. Kartaev ◽  
I. D. Medvedev
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Dynamic Models ◽  
Oil Prices ◽  
Oil Price ◽  
Oil Price Shocks ◽  
Negative Effects ◽  
Price Shocks ◽  
Policy Regime ◽  
The Impact

The paper examines the impact of oil price shocks on inflation, as well as the impact of the choice of the monetary policy regime on the strength of this influence. We used dynamic models on panel data for the countries of the world for the period from 2000 to 2017. It is shown that mainly the impact of changes in oil prices on inflation is carried out through the channel of exchange rate. The paper demonstrates the influence of the transition to inflation targeting on the nature of the relationship between oil price shocks and inflation. This effect is asymmetrical: during periods of rising oil prices, inflation targeting reduces the effect of the transfer of oil prices, limiting negative effects of shock. During periods of decline in oil prices, this monetary policy regime, in contrast, contributes to a stronger transfer, helping to reduce inflation.

The influence of inflation targeting on the pass-through effect of the exchange rate

2018 ◽  
pp. 70-84
Author(s):  
Ph. S. Kartaev ◽  
Yu. I. Yakimova
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
Exchange Rate ◽  
Inflation Targeting ◽  
Policy Regime ◽  
Short And Long Term ◽  
The Exchange Rate ◽  
Pass Through ◽  
The Impact

The paper studies the impact of the transition to the inflation targeting regime on the magnitude of the pass-through effect of the exchange rate to prices. We analyze cross-country panel data on developed and developing countries. It is shown that the transition to this regime of monetary policy contributes to a significant reduction in both the short- and long-term pass-through effects. This decline is stronger in developing countries. We identify the main channels that ensure the influence of the monetary policy regime on the pass-through effect, and examine their performance. In addition, we analyze the data of time series for Russia. It was concluded that even there the transition to inflation targeting led to a decrease in the dependence of the level of inflation on fluctuations in the ruble exchange rate.

scholarly journals Understanding the impact of Commercial Banks Lending Rate on Economic Growth: An Empirical Evidence from Ghana.

2021 ◽  
Author(s):  
Emmanuel Buabeng ◽  
Opoku Adabor ◽  
Elizabeth Nana-Amankwaah
Keyword(s):  
Economic Growth ◽  
Commercial Banks ◽  
Inflation Targeting ◽  
Policy Interventions ◽  
Lending Rate ◽  
Percent Increase ◽  
Short Run ◽  
Causal Approach ◽  
The Impact ◽  
Toda And Yamamoto

Abstract The main objective of this paper is to investigate the impact of lending rate on economic growth in Ghana. To do this, we employ the autoregressive distributed lags model (ARDL) and the Toda and Yamamoto (1995) causal approach as estimation strategy. The estimates from the ARDL model suggest that ceteris paribus one percent increase in lending rate generates approximately 0.15 decrease in economic growth of Ghana in the long. In the short run, one percent increase in lending rate also generates approximately 0.112 percent decrease in economic growth. Contrary to the widespread belief that lending rate induce economic growth, we find that gross domestic product rather spurs lending rate, using Toda and Yamamoto (1995) causal approach. Our findings suggest that monetary authorities should embark on policy interventions that aim at taming lending rate towards growth enhancing targets. This will encourage individuals, firms and other institutions to borrow from commercial banks to increase investment and consumption to accelerate economic growth. Other policy interventions include strengthening inflation targeting policy to reduce and stabilize inflation while taming exchange rate, monetary policy and treasury bill rate towards economic growth enhancing targets.

scholarly journals FEATURES OF INTEREST-BEARING MONETARY POLICY INSTRUMENTS OF THE CZECH NATIONAL BANK

2020 ◽  
pp. 127-133
Author(s):  
A. V. Berdyshev ◽  
N. S. Bobyr
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Inflation Targeting ◽  
Global Financial Crisis ◽  
Policy Instruments ◽  
Macroeconomic Policies ◽  
Exact Test ◽  
Macroeconomic Indicators ◽  
National Bank ◽  
The Impact

The features of the economic development of the Czech Republic after the global financial crisis, the role of the Czech National Bank in the formation of macroeconomic policies, as well as the peculiarities of monetary regulation in the study period have been defined in the article. The main goal of the paper is to assess the impact of interest rates used by the Czech National Bank in the process of monetary regulation on the dynamics of the main macroeconomic indicators, which is considered as one of the necessary conditions for the effectiveness of the inflation targeting regime. By the results of the correlation analysis and Fisher’s exact test, it has been determined that the Czech National Bank could affect the main macroeconomic indicators based on the percentage of monetary policy instruments used.

scholarly journals The Impact of The Pandemic on The Economy of The Republic of Uzbekistan

2021 ◽  
Vol 7 (1) ◽  
pp. 161
Author(s):  
Baykhonov Bahodirjon Tursunbaevich ◽  
Mullabayev Baxtiyarjon Bulturbayevich ◽  
Abdul Rahmat
Keyword(s):  
Foreign Exchange Market ◽  
Inflation Targeting ◽  
Gradual Transition ◽  
Exchange Market ◽  
Market Mechanisms ◽  
Budget Planning ◽  
The Republic ◽  
The Impact ◽  
State Enterprises

In recent years, a number of radical reforms aimed at liberalizing the socioeconomic spheres of the country have been consistently carried out. In particular, a number of reforms aimed at liberalizing the foreign exchange market, tax reform aimed at increasing incomes and stimulating production, the gradual transition to medium term budget planning, reducing the role of inflation targeting in the economy, gradual privatization of state enterprises and the introduction of market mechanisms continue.

scholarly journals Friedman Meets Hayek on Money and Prices in Canada

2016 ◽  
Vol 8 (1) ◽  
pp. 69-96
Author(s):  
Kam Hon Chu
Keyword(s):  
Inflation Targeting ◽  
Price Level ◽  
Relative Price ◽  
Price Stability ◽  
Business Cycle Theory ◽  
Relative Prices ◽  
General Price Level ◽  
Price Indexes ◽  
Monetary Shock ◽  
The Impact

Though both classical liberals, Friedman adopted the quantity theory of money and used the general price indexes and aggregate data in empirical analysis, whereas Hayek rejected aggregative analyses as potentially misleading and focused on the impact of money on relative prices in his business cycle theory. This study shows theoretically that when the central bank minimizes the monetary shock to maintain stability in the general price level, it also maintains simultaneously relative price stability, thus narrowing the divergence between Friedman and Hayek. This finding is empirically verified by Canada’s experience with inflation targeting since 1991

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