How Can Voters Classify an Incumbent Under Output Persistence

2008 ◽  
Author(s):  
António Caleiro
Keyword(s):  
Output Persistence

scholarly journals The term structure of interest rates and inflation forecast targeting

2011 ◽  
Vol 12 (2) ◽  
pp. 162-179
Author(s):  
Eric Schaling ◽  
Willem Verhagen ◽  
Sylvester Eiffinger
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Interest Rates ◽  
Term Structure ◽  
Inflation Targeting ◽  
Nominal Interest Rate ◽  
Term Spread ◽  
State Of The Economy ◽  
Output Persistence

This paper examines the implications of the expectations theory of the term structure of interest rates for the implementation of inflation targeting. We show that the responsiveness of the central bank’s instrument to the underlying state of the economy is increasing in the duration of the long-term bond.  On the other hand, an increase in duration will make long-term inflationary expectations - and therefore also the long-term nominal interest rate - less responsive to the state of the economy. The extent to which the central bank is concerned with output stabilisation will exert a moderating influence on the central bank’s response to leading indicators of future inflation. However, the effect of an increase in this parameter on the long-term nominal interest rate turns out to be ambiguous. Next, we show that both the sensitivity of the nominal term spread to economic fundamentals and the extent to which the spread predicts future output, are increasing in the duration of the long bond and the degree of structural output persistence. However, if the central bank becomes relatively less concerned about inflation stabilisation the term spread will be less successful in predicting real economic activity.

International evidence on output persistence from postwar data

1992 ◽  
Vol 38 (4) ◽  
pp. 435-441 ◽  
Author(s):  
Yin-Wong Cheung ◽  
Kon S. Lai
Keyword(s):  
International Evidence ◽  
Output Persistence

scholarly journals Nonuniform Staggered Prices and Output Persistence

2013 ◽  
Vol 45 (6) ◽  
pp. 1017-1044 ◽  
Author(s):  
JOHAN SÖDERBERG
Keyword(s):  
Output Persistence

scholarly journals Another look at sticky prices and output persistence

2006 ◽  
Vol 30 (12) ◽  
pp. 2533-2552 ◽  
Author(s):  
Peng-fei Wang ◽  
Yi Wen
Keyword(s):  
Sticky Prices ◽  
Output Persistence

The Great Depression and Output Persistence: A Reply to Papell and Prodan

2004 ◽  
Vol 36 (3a) ◽  
pp. 429-432 ◽  
Author(s):  
Christian Joseph Murray ◽  
Charles R. Nelson
Keyword(s):  
Great Depression ◽  
The Great Depression ◽  
Output Persistence
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