scholarly journals The Unemployment Inflation Trade-Off in the Euro Area

2005 ◽  
Author(s):  
Tobias Linzert
Keyword(s):  
Euro Area ◽  
Trade Off

Inflation expectations matter more than unemployment

2021 ◽  
Keyword(s):  
Euro Area ◽  
Central Banks ◽  
Inflation Expectations ◽  
Trade Off ◽  
Content Type

Significance The surge in inflation this year owes more to supply bottlenecks caused by the release of pent-up demand than to falling unemployment. In the decade before the pandemic, US unemployment more than halved and euro-area unemployment nearly halved, but inflation remained below target in both economic areas. Impacts Central banks face the dilemma of raising rates too early for growth and too late for inflation, and may struggle to dampen expectations. The threat of a possible revival of the pandemic will help temporarily to cool inflation expectations that have surged in 2021. The trade-off between unemployment and inflation that has been missing for many years may emerge again once the pandemic is finally over.

Testing the significance and the non-linearity of the Phillips trade-off in the Euro Area

2005 ◽  
Vol 30 (3) ◽  
pp. 665-691 ◽  
Author(s):  
Alvaro Aguiar ◽  
Manuel M. F. Martins
Keyword(s):  
Euro Area ◽  
Trade Off

scholarly journals Optimal Simple Objectives for Monetary Policy when Banks Matter

2020 ◽  
Vol 20 (244) ◽  
Author(s):  
Lien Laureys ◽  
Roland Meeks ◽  
Boromeus Wanengkirtyo
Keyword(s):  
Monetary Policy ◽  
Resource Utilization ◽  
Euro Area ◽  
Inflation Targeting ◽  
Financial Frictions ◽  
Bank Credit ◽  
Optimal Monetary Policy ◽  
Trade Off ◽  
Welfare Benefits ◽  
Financing Frictions

We reconsider the design of welfare-optimal monetary policy when financing frictions impair the supply of bank credit, and when the objectives set for monetary policy must be simple enough to be implementable and allow for effective accountability. We show that a flexible inflation targeting approach that places weight on stabilizing inflation, a measure of resource utilization, and a financial variable produces welfare benefits that are almost indistinguishable from fully-optimal Ramsey policy. The macro-financial trade-off in our estimated model of the euro area turns out to be modest, implying that the effects of financial frictions can be ameliorated at little cost in terms of inflation. A range of different financial objectives and policy preferences lead to similar conclusions.

Trend, Cycle and Non-Linear Trade-Off in the Euro Area 1972-2001

2002 ◽  
Author(s):  
Alvaro Pinto Coelho de Aguiar ◽  
Manuel Mota Freitas Martins
Keyword(s):  
Euro Area ◽  
Trade Off ◽  
Non Linear

A Flow-Preserving Algorithm for the Time-Cost Trade-Off Problem

1982 ◽  
Vol 14 (2) ◽  
pp. 109-113 ◽  
Author(s):  
Suleyman Tufekci
Keyword(s):  
Time Cost ◽  
Trade Off

Dual Goals for Speed and Accuracy on the Same Performance Task

2012 ◽  
Vol 11 (3) ◽  
pp. 118-126 ◽  
Author(s):  
Olive Emil Wetter ◽  
Jürgen Wegge ◽  
Klaus Jonas ◽  
Klaus-Helmut Schmidt
Keyword(s):  
Memory Scanning ◽  
Performance Task ◽  
Performance Tasks ◽  
Trade Off ◽  
Test Experiment ◽  
Trade Offs ◽  
New Finding ◽  
Sternberg Paradigm ◽  
Speed Accuracy ◽  
Speed And Accuracy

In most work contexts, several performance goals coexist, and conflicts between them and trade-offs can occur. Our paper is the first to contrast a dual goal for speed and accuracy with a single goal for speed on the same task. The Sternberg paradigm (Experiment 1, n = 57) and the d2 test (Experiment 2, n = 19) were used as performance tasks. Speed measures and errors revealed in both experiments that dual as well as single goals increase performance by enhancing memory scanning. However, the single speed goal triggered a speed-accuracy trade-off, favoring speed over accuracy, whereas this was not the case with the dual goal. In difficult trials, dual goals slowed down scanning processes again so that errors could be prevented. This new finding is particularly relevant for security domains, where both aspects have to be managed simultaneously.

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