Diagnostic Expectations and Macroeconomic Volatility

2021 ◽  
Author(s):  
Jean-Paul L'Huillier ◽  
Sanjay R. Singh ◽  
Donghoon Yoo
Keyword(s):  
Macroeconomic Volatility

Do Money Targets Matter for Monetary Policy in Kenya?

2018 ◽  
Author(s):  
Michal Andrle ◽  
Andrew Berg ◽  
Enrico Berkes ◽  
R. Armando Morales ◽  
Rafael Portillo ◽  
...  
Keyword(s):  
Monetary Policy ◽  
Money Demand ◽  
Aggregate Demand ◽  
Demand Forecasting ◽  
Money Growth ◽  
Structural Shocks ◽  
Macroeconomic Volatility ◽  
Ex Post ◽  
Policy Shocks ◽  
General Specification

The framework in Chapter 15 is extended to incorporate an explicit role for money aggregates, with an application to Kenya. The chapter provides a general specification that can nest various types of money targeting (ranging from targets based on optimal money demand forecasts to those derived from simple money growth rules), interest-rate based frameworks, and intermediate cases. A novel interpretation of target misses in terms of structural shocks (aggregate demand, policy, shocks to money demand, etc.) is presented. In the case of Kenya, the authors find that: (i) the setting of money targets is consistent with money demand forecasting, (ii) targets have not played a systematic role in monetary policy, and (iii) target misses mainly reflect shocks to money demand. Simulations of the model under alternative policy specifications show that the stronger the ex post target adherence, the greater the macroeconomic volatility.

The link between institutions, technical change and macroeconomic volatility

2008 ◽  
Vol 30 (4) ◽  
pp. 1520-1549 ◽  
Author(s):  
Sam Hak Kan Tang ◽  
Nicolaas Groenewold ◽  
Charles Ka Yui Leung
Keyword(s):  
Technical Change ◽  
Macroeconomic Volatility
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