Arbeitspapier
Robust real rate rules
Central banks wish to avoid self-fulfilling fluctuations. Monetary rules with a unit response to real rates achieve this under the weakest possible assumptions about the behaviour of households and firms. They are robust to household heterogeneity, hand-to-mouth consumers, non-rational household/firm expectations, active fiscal policy, missing transversality conditions and to any form of intertemporal or nominal-real links. They are easy to employ in practice, using inflation protected bonds to infer real rates. With a time-varying inflation target, they can implement arbitrary inflation dynamics, including optimal policy. They work thanks to the key role played by the Fisher equation in monetary transmission.
- Sprache
-
Englisch
- ISBN
-
978-3-95729-921-5
- Erschienen in
-
Series: Deutsche Bundesbank Discussion Paper ; No. 42/2022
- Klassifikation
-
Wirtschaft
Monetary Policy
Interest Rates: Determination, Term Structure, and Effects
Price Level; Inflation; Deflation
- Thema
-
robust monetary rules
determinacy
Taylor principle
inflation dynamics
monetary transmission mechanism
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Holden, Tom D.
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsche Bundesbank
- (wo)
-
Frankfurt a. M.
- (wann)
-
2022
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Holden, Tom D.
- Deutsche Bundesbank
Entstanden
- 2022
Ähnliche Objekte (12)
Exchange rate statistics
Robust real rate rules
Robust Real Rate Rules
Cyclical adjustment in fiscal rules: Some evidence on real-time bias for EU-15 countries
Exchange rate pass-through and real exchange rate in EU candidate countries
Equilibrium real exchange rate estimates across time and space
Interest rate rules under financial dominance
Forecast quality and simple instrument rules: a real-time data approach
Estimating equilibrium real interest rates in real-time
Taylor rules for the euro area: the issue of real-time data
Robust inference intime-varying structural VAR models: The DC-Cholesky multivariate stochasticvolatility model
Monetary indicators and policy rules in the P-star model
Exchange rate statistics
Robust real rate rules
Robust Real Rate Rules
Cyclical adjustment in fiscal rules: Some evidence on real-time bias for EU-15 countries
Exchange rate pass-through and real exchange rate in EU candidate countries
Equilibrium real exchange rate estimates across time and space
Interest rate rules under financial dominance
Forecast quality and simple instrument rules: a real-time data approach
Estimating equilibrium real interest rates in real-time
Taylor rules for the euro area: the issue of real-time data
Robust inference intime-varying structural VAR models: The DC-Cholesky multivariate stochasticvolatility model
Monetary indicators and policy rules in the P-star model
Exchange rate statistics
Robust real rate rules
Robust Real Rate Rules
Cyclical adjustment in fiscal rules: Some evidence on real-time bias for EU-15 countries
Exchange rate pass-through and real exchange rate in EU candidate countries
Equilibrium real exchange rate estimates across time and space
Interest rate rules under financial dominance
Forecast quality and simple instrument rules: a real-time data approach
Estimating equilibrium real interest rates in real-time
Taylor rules for the euro area: the issue of real-time data
Robust inference intime-varying structural VAR models: The DC-Cholesky multivariate stochasticvolatility model