Short-Term Interest Rate Futures as Monetary Policy Forecasts

2008 ◽  
Author(s):  
Giuseppe Ferrero ◽  
Andrea Nobili
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Short Term ◽  
Interest Rate Futures

scholarly journals Monetary Policy When the Nominal Short-Term Interest Rate is Zero

2003 ◽  
Vol 3 (1) ◽  
Author(s):  
James Clouse ◽  
Dale Henderson ◽  
Athanasios Orphanides ◽  
David H. Small ◽  
P.A. Tinsley
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Short Term

scholarly journals Monetary Policy When the Nominal Short-Term Interest Rate is Zero

2000 ◽  
Vol 2000 (51) ◽  
pp. 1-84 ◽  
Author(s):  
James A. Clouse ◽  
◽  
Dale W. Henderson ◽  
Athanasios Orphanides ◽  
David H. Small ◽  
...  
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Short Term

Monetary Policy and the Top 10%: A Time-Series Analysis Using ARDL and ECM

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Nadeen Omar ◽  
Christian Richter
Keyword(s):  
Time Series ◽  
Monetary Policy ◽  
Interest Rate ◽  
Income Inequality ◽  
Dynamic Models ◽  
Short Term ◽  
Main Hypothesis ◽  
Income Share ◽  
Distributed Lag ◽  
The Impact

Abstract For the past decades, income inequality has been on the rise, and so is the frequency of its mentions in recent speeches by central bankers. With the heightened importance of the topic, this research aims to study the impact of monetary policy on income inequality. The study used dynamic models for the analysis, namely; the Error-correction Model (ECM) and the Auto-regressive Distributed Lag (ARDL) model to determine the relationship in both the short- and long-run. The data used were the top 10% income share and the short-term interest rate. Our main hypothesis is that changes in the short-term interest rate have a significant impact on the top 10% income share. We draw time-series evidence from a sample of nine economies at different stages of development: United States, United Kingdom, Russia, Germany, France, Greece, China, South Africa and Chile. The findings support the hypothesis with interestingly varying effects across our sample. These results provide important implications that can contribute in bettering policy setting and add to the discussion of the role of central banks in reducing income inequality.

scholarly journals Existence of Equilibrium for Segmented Markets Models with Interest Rate Monetary Policies

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
Filippo Occhino
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Financial Markets ◽  
Nominal Interest Rate ◽  
Short Term ◽  
Monetary Policies ◽  
Segmented Markets ◽  
Monetary Analysis ◽  
Maximum Value ◽  
Similar Proof

Several studies have recently adopted the segmented markets model as a framework for monetary analysis. The characteristic assumption is that some households never participate in financial markets. This paper proves the existence of an equilibrium for segmented markets models where monetary policy is defined in terms of the short-term nominal interest rate. The model allows us to consider the important cases where monetary policy affects output, and responds to any sources of uncertainty, including output itself. The assumptions required for existence constrain the maximum value and the variability of the nominal interest rate. The period utility function is logarithmic. The proof is constructive, and shows how the model can be solved numerically. A similar proof can be used in the case that monetary policy is defined in terms of the bond supply.

scholarly journals Transmission of Monetary Policy through Credit Interest Rates in Turkey: A Microeconomic Perspective

2021 ◽  
Vol 11 (4) ◽  
pp. 122
Author(s):  
Ilyas Siklar
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Short Term ◽  
Dynamic Panel Model ◽  
Panel Model ◽  
Loan Interest Rates ◽  
High Degree ◽  
Transmission Of Monetary Policy ◽  
Policy Interest

This study aims to examine the monetary policy transmission through the credit channel from a microeconomic perspective by using the fixed effect dynamic panel model. It is estimated to what extent policy interest rate changes are transferred to the short-term interest rate depending on the type of loan. Results confirm that there is a high degree of inertia in both the commercial and consumer loan interest rates. In terms of the transmission of monetary policy, changes in policy interest rates are transferred to commercial loan interest rates by 11% and consumer loan interest rates by 15% in the short term. These values reveal that policy interest rate changes are gradually transmitted to market interest rates. Variables representing bank size, leverage, and market power in terms of distinctive characteristics have a limited impact on both commercial and consumer loan interest rates in the analyzing period. However, the market share of a bank has a significant impact on both commercial and consumer loan rates.

scholarly journals Assessing the Role of Money versus Interest Rate in Pakistan

2020 ◽  
Vol 59 (1) ◽  
pp. 101-114
Author(s):  
Zafar Hayat ◽  
Muhammad Nadim Hanif
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Relative Effectiveness ◽  
Policy Instruments ◽  
Jel Classification ◽  
Short Term ◽  
Price Puzzle ◽  
The Interest Rate ◽  
The Impact

We have empirically examined the role of monetary aggregate(s) vis-à-vis short-term interest rate as monetary policy instruments, and the impact of State Bank of Pakistan’s transformation into the latter on their relative effectiveness in terms of inflation in Pakistan. Using indicators of ‘persistent changes’ in the underlying behaviours of variables of interest, we found that broad money consistently explains inflation in (i) monetary (ii) transitory and (iii) interest rate regimes. Though its role has receded while moving from the transition to the interest rate regime, the interest rate instrument seems to be positively related to inflation, a phenomenon commonly known as price puzzle. In light of these findings, we recommend that the role of money should not be completely de-emphasised. JEL Classification: E31, E52. Keywords: Monetary Policy Instruments, Price Puzzle, ARDL, Pakistan

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