(Inflation Dynamics and Monetary Policy)

2015 ◽  
Author(s):  
Joon Myung Woo
Keyword(s):  
Monetary Policy ◽  
Inflation Dynamics

Term Premium Dynamics and the Taylor Rule

2017 ◽  
Vol 07 (04) ◽  
pp. 1750011 ◽  
Author(s):  
Michael Gallmeyer ◽  
Burton Hollifield ◽  
Francisco Palomino ◽  
Stanley Zin
Keyword(s):  
Monetary Policy ◽  
Term Structure ◽  
Taylor Rule ◽  
Exchange Economy ◽  
Bond Pricing ◽  
Time Varying ◽  
Inflation Dynamics ◽  
Term Premium ◽  
Nominal Term

We explore the bond-pricing implications of an exchange economy where preference shocks result in time-varying term premiums in real yields with a Taylor rule determining inflation dynamics and nominal term premiums. We calibrate the model by matching the term structure of the means and volatilities of nominal yields. Unlike a model with exogenous inflation, a Taylor rule matching empirical properties of inflation leads to nominal term premiums that are volatile at long maturities. Increasing monetary policy aggressiveness decreases the level and volatility of nominal yields.

ECB will ease monetary policy further on March 10

2016 ◽  
Keyword(s):  
Monetary Policy ◽  
Inflation Dynamics ◽  
Financial Conditions

Downside risks, tightening of financial conditions and weak inflation dynamics

scholarly journals Monetary Policy and Inflation Dynamics

2004 ◽  
Vol 2004 (62) ◽  
pp. 1-46
Author(s):  
John M. Roberts ◽  
Keyword(s):  
Monetary Policy ◽  
Inflation Dynamics
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