scholarly journals Sacrifice Ratios and Monetary Policy Credibility : Do Smaller Budget Deficits, Inflation-Indexed Debt, and Inflation Targets Lower Disinflation Costs?

2001 ◽  
Vol 2001 (47) ◽  
pp. 1-62
Author(s):  
J. B. Durham ◽  
Keyword(s):  
Monetary Policy ◽  
Budget Deficits ◽  
Inflation Targets ◽  
Policy Credibility ◽  
Sacrifice Ratios

scholarly journals Currency Boards, Dollarized Liabilities, and Monetary Policy Credibility

2003 ◽  
pp. 1.000-34.000
Author(s):  
Diego Valderrama ◽  
◽  
Mark M. Spiegel ◽  
Keyword(s):  
Monetary Policy ◽  
Currency Boards ◽  
Policy Credibility

Macroeconomic Policy in Japan

2002 ◽  
Vol 1 (2) ◽  
pp. 133-165 ◽  
Author(s):  
Warwick J. McKibbin
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Inflation Targeting ◽  
Macroeconomic Policy ◽  
Japanese Economy ◽  
Open Market ◽  
Government Bonds ◽  
Fiscal Adjustments ◽  
Inflation Targets

This paper explores the composition of the macroeconomic policy packages that would be effective in stimulating the Japanese economy. An empirical econometric model is used to predict the consequences of a monetary stimulus consisting of an open-market purchase of government bonds by the Bank of Japan combined with the announcement and implementation of inflation targeting in Japan. The paper also compares the impacts of permanent, temporary, and phased fiscal adjustments. The model predicts that monetary policy would be effective in stimulating the Japanese economy through causing a depreciation of the yen. Similarly, a substantial fiscal consolidation in Japan would be only mildly contractionary for the first two years but then would yield substantial long-term benefits to the Japanese economy. Combining a credible fiscal contraction that is phased in over three years with an inflation target would be likely to provide a powerful macroeconomic stimulus to the Japanese economy, through a weaker exchange rate and lower long-term real interest rates, and would sustain higher growth in Japan for a decade. Thus, a switch in the macroeconomic policy mix toward a loose monetary policy (e.g., setting inflation targets between 2 and 3 percent) and a tight fiscal policy is likely to be an important part of a successful package of reforms to raise Japanese productivity growth over the coming years.

scholarly journals Monetary Policy Credibility and Exchange Rate Pass-Through

2016 ◽  
Author(s):  
Yan Carriere-Swallow ◽  
Bertrand Gruss ◽  
Nicolas E. Magud ◽  
Fabian V. Valencia
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Policy Credibility ◽  
Pass Through ◽  
Exchange Rate Pass Through
Sign in / Sign up

Export Citation Format

Share Document