Supra-National Central Bank – Federal Reserve Interest Rate Policy Effects on Foreign Equity Markets

2020 ◽  
Author(s):  
Shaun Rowles
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Federal Reserve ◽  
Equity Markets ◽  
Interest Rate Policy ◽  
Policy Effects ◽  
Rate Policy

Modeling of the interest rate policy of the central bank of Russia

2017 ◽  
Author(s):  
A. G. Shelomentsev ◽  
D. B. Berg ◽  
A. A. Detkov ◽  
A. P. Rylova
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Interest Rate Policy ◽  
Rate Policy ◽  
The Interest Rate

How Much Better Is Commitment Policy Than Discretionary Policy? Evidence From Six Developed Economies

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
C. Patrick Scott
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Inflation Targeting ◽  
New Keynesian ◽  
Interest Rate Policy ◽  
Developed Economies ◽  
Output Stability ◽  
High Preference ◽  
Rate Policy ◽  
Policy Simulations

AbstractMuch has been written on how an active central bank produces inflation outcomes above and beyond what commitment policy would produce. This paper contributes to this body of literature by simulating from the state estimates of both commitment and discretionary policy equilibria in a familiar dynamic New–Keynesian framework. Optimal interest rate and inflation rate policies are derived under the two regimes for six developed economies. The model is estimated using Bayesian methods employing a random-walk Metropolis–Hastings algorithm. Optimal inflation and interest rate policies for each of the economies are simulated. Results suggest that the simulated inflation induced by discretionary policy is not significantly different from commitment policy after 2000 for five of the six countries (including the U.S). Simulated commitment interest rate policy is on average 1.9% higher at the center of the distribution, suggesting that discretionary interest rate policy is on average more often loose compared to commitment interest rate policy. Simulations of the average inflation deviation and welfare loss of discretion policy indicate are greatest when the central bank exhibits low preference for inflation targeting and high preference for output stability.

Effect of Low and Negative Interest Rates: Evidence from Indian and Sri Lankan Economies

2018 ◽  
Vol 6 (2) ◽  
pp. 90-99
Author(s):  
Moid U. Ahmad ◽  
Hetti Arachchige Gamini Premaratne
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Interest Rates ◽  
High Rate ◽  
Sri Lankan ◽  
Global Business ◽  
Interest Rate Policy ◽  
Negative Interest Rates ◽  
The Us ◽  
Rate Policy

Interest rates are critical to any economy. Usually the central bank of a country supervises and tries to control the interest rates but there is always an element of uncontrollable effects: local or international. A central bank adopts a monetary strategy to affect various macroeconomic parameters such as inflation, exchange rate (ER), economic growth and many others. A country may decide to adopt Ultra-low Interest Rate Policy (ULIRP) or Negative Interest Rate Policy (NIRP) or a policy with moderate/high rate of interest. In today’s global business scenario, economies are connected and influence one another. The US and UK economies have seen a very low and negative interest rates historically, at least in recent past. Indian and Sri Lankan economies are integrated with the US and UK economies and thus are affected by their prevailing interest rates. The effect of low and zero interest rate policy of a country (USA and UK) on interest rates and economy of co-integrated economies (India and Sri Lanka) have been studied in this research. The objective of this study is to understand the implications of ULIRPs and NIRPs in the context of Indian and Sri Lankan economies. Two significant conclusions of the research are that Indian and Sri Lankan economies are affected by the US and UK policies and that they are affected at a lag of eight years.

scholarly journals Central bank interest policy: conceptual concepts and socio-economic context

2021 ◽  
Vol 7 (Extra-E) ◽  
pp. 531-536
Author(s):  
Aleksandr N. Sukharev ◽  
Sergey N. Smirnov
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Interest Rates ◽  
Interest Rate Policy ◽  
Economic Context ◽  
Negative Interest Rates ◽  
Interest Policy ◽  
Rate Policy ◽  
The Interest Rate

The article reveals the goals and mechanisms of the interest rate policy of the central bank. The role of the discount rate in ensuring financial and macroeconomic stability is shown. The Taylor rule is presented and justified in a modified form, by including the money supply parameter in it. The phenomenon of negative interest rates is revealed.

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