Monetary Policy Transparency in the UK: The Impact of Independence and Inflation Targeting

2007 ◽  
Vol 21 (5) ◽  
pp. 603-617 ◽  
Author(s):  
Iris Biefang‐Frisancho Mariscal ◽  
Peter Howells
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
The Uk ◽  
The Impact ◽  
Monetary Policy Transparency

Monetary policy and the effect of the transfer of oil prices to inflation

2020 ◽  
pp. 41-50
Author(s):  
Ph. S. Kartaev ◽  
I. D. Medvedev
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Dynamic Models ◽  
Oil Prices ◽  
Oil Price ◽  
Oil Price Shocks ◽  
Negative Effects ◽  
Price Shocks ◽  
Policy Regime ◽  
The Impact

The paper examines the impact of oil price shocks on inflation, as well as the impact of the choice of the monetary policy regime on the strength of this influence. We used dynamic models on panel data for the countries of the world for the period from 2000 to 2017. It is shown that mainly the impact of changes in oil prices on inflation is carried out through the channel of exchange rate. The paper demonstrates the influence of the transition to inflation targeting on the nature of the relationship between oil price shocks and inflation. This effect is asymmetrical: during periods of rising oil prices, inflation targeting reduces the effect of the transfer of oil prices, limiting negative effects of shock. During periods of decline in oil prices, this monetary policy regime, in contrast, contributes to a stronger transfer, helping to reduce inflation.

The influence of inflation targeting on the pass-through effect of the exchange rate

2018 ◽  
pp. 70-84
Author(s):  
Ph. S. Kartaev ◽  
Yu. I. Yakimova
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
Exchange Rate ◽  
Inflation Targeting ◽  
Policy Regime ◽  
Short And Long Term ◽  
The Exchange Rate ◽  
Pass Through ◽  
The Impact

The paper studies the impact of the transition to the inflation targeting regime on the magnitude of the pass-through effect of the exchange rate to prices. We analyze cross-country panel data on developed and developing countries. It is shown that the transition to this regime of monetary policy contributes to a significant reduction in both the short- and long-term pass-through effects. This decline is stronger in developing countries. We identify the main channels that ensure the influence of the monetary policy regime on the pass-through effect, and examine their performance. In addition, we analyze the data of time series for Russia. It was concluded that even there the transition to inflation targeting led to a decrease in the dependence of the level of inflation on fluctuations in the ruble exchange rate.

scholarly journals FEATURES OF INTEREST-BEARING MONETARY POLICY INSTRUMENTS OF THE CZECH NATIONAL BANK

2020 ◽  
pp. 127-133
Author(s):  
A. V. Berdyshev ◽  
N. S. Bobyr
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Inflation Targeting ◽  
Global Financial Crisis ◽  
Policy Instruments ◽  
Macroeconomic Policies ◽  
Exact Test ◽  
Macroeconomic Indicators ◽  
National Bank ◽  
The Impact

The features of the economic development of the Czech Republic after the global financial crisis, the role of the Czech National Bank in the formation of macroeconomic policies, as well as the peculiarities of monetary regulation in the study period have been defined in the article. The main goal of the paper is to assess the impact of interest rates used by the Czech National Bank in the process of monetary regulation on the dynamics of the main macroeconomic indicators, which is considered as one of the necessary conditions for the effectiveness of the inflation targeting regime. By the results of the correlation analysis and Fisher’s exact test, it has been determined that the Czech National Bank could affect the main macroeconomic indicators based on the percentage of monetary policy instruments used.

scholarly journals Business cycle synchronization: is it affected by inflation targeting credibility?

SERIEs ◽  
2019 ◽  
Vol 11 (2) ◽  
pp. 157-177
Author(s):  
Carlos Delgado ◽  
Iván Araya ◽  
Gabriel Pino
Keyword(s):  
Monetary Policy ◽  
Business Cycle ◽  
Inflation Targeting ◽  
Short Term Memory ◽  
Aggregate Demand ◽  
Credibility Measure ◽  
Inflation Expectations ◽  
Business Cycle Synchronization ◽  
Vector Autoregressive ◽  
The Impact

Abstract We empirically study the impact of inflation targeting credibility on business cycle synchronization with G-7 economies. To do this, we use a sample of 15 inflation targeting countries to develop and calculate a reputation-based credibility measure for long- and short-term memory. By using dynamic multipliers through a panel vector autoregressive model, our main findings indicate that greater credibility allows for greater anchoring of inflation expectations by economic agents. This would lead to a greater effectiveness of monetary policy in stabilizing the evolution of prices, allowing the output gap to be more sensitive to external aggregate demand shocks. Therefore, countries with inflation targeting regimes must develop and maintain credibility for their monetary policy if they want to encourage greater interactions with the rest of the world.

scholarly journals Monetary regulation and its role in the state’s economic growth

2020 ◽  
Vol 2020 (10) ◽  
pp. 81-94
Author(s):  
Viktoriia KOVALENKO ◽  
◽  
Sergii SHELUDKO ◽  
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Inflation Targeting ◽  
Rapid Development ◽  
Close Correlation ◽  
Fiscal Policies ◽  
Common Goals ◽  
Sustainable Economic Growth ◽  
The Impact

The article provides a comparative analysis of monetary regulation models and explores their impact on economic growth. The aim of the paper is to study models of monetary regulation and their impact on economic growth. The authors claim that monetary regulation of any country in the world should be aimed at ensuring economic growth. The study shows that the rapid development of monetary policy and economic growth theories is marked by certain contradictions, uncertainty and cross flows. Based on the analysis of the views of researchers on the impact of monetary regulation on economic growth, the authors conclude that concepts are divided according to those that characterize weak relations between these phenomena, and those that prove close correlation. The authors state that in Ukraine, in conditions of using a monetary design based on the inflation targeting regime and taking into account the importance of increasing the efficiency of using main instruments of monetary regulation, it is necessary, first of all, to ensure the consistency of monetary and fiscal policies. The coordination of monetary and fiscal policies should consist of developing and implementing them in such a way that they do not contradict each other and together contribute to the achievement of the common goals of economic policy, such as sustainable economic growth and low unemployment in terms of long-term price and external stabilities. That is, the main problem of the significant influence of monetary regulation on economic growth in the country lies in restoring the effectiveness of the channels of the transmission mechanism of monetary policy, which depends on the choice of monetary design.

scholarly journals The impact of inflation targeting on macroeconomic indicators in Ukraine

2020 ◽  
Vol 15 (2) ◽  
pp. 94-104
Author(s):  
Mykhailo Kuzheliev ◽  
Dmytro Zherlitsyn ◽  
Ihor Rekunenko ◽  
Alina Nechyporenko ◽  
Guram Nemsadze
Keyword(s):  
Monetary Policy ◽  
Emerging Economies ◽  
Inflation Targeting ◽  
Consumer Price Index ◽  
Policy Instruments ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Policy Implications ◽  
Economic Indicators ◽  
The Impact

The correlation between macroeconomic dynamics and the inflation rate is the subject of many economic studies. The principles of monetary policy are developed in classical economics studies, which are based on the theories of Keynes, Phillips, Campbell, etc. However, classic approaches require practical validation, especially with regard to modern economic trends in times of crisis and emerging economies. Therefore, the purpose of the paper is to investigate and summarize the impact of inflation targeting and other key monetary policy instruments on fundamental economic indicators in Ukraine during periods of stability and crises. An empirical analysis is based on official statistics from Ukraine for 2011–2019. This study uses econometric methods (multivariate regression and simultaneous equation model), which are applied for the general and transmission impact of inflation on the estimation of economic growth. The results prove that inflation does not affect (less than 0.46 linear correlation) fundamental economic indicators during periods of real GDP growth and a quarterly CPI level of less than 2%. On the other hand, there are significant simultaneous regressions (more than 0.8 coefficients of determination) between unemployed, spending on real final consumption, hryvnia exchange rate and monetary policy instruments (discount rate, international reserves, amount of government bonds, M3 monetary aggregate) for periods when the quarterly CPI (consumer price index) is more than 2%. Therefore, the traditional monetary policy implications are discussed for emerging economies.

scholarly journals The Impact of Monetary Policy on the Financial Stability of the Banking System: Setting a Modeling Problem

2021 ◽  
Vol 2 (517) ◽  
pp. 81-88
Author(s):  
A. D. Pilko ◽  
◽  
V. R. Kramar ◽  
Keyword(s):  
Monetary Policy ◽  
Financial Stability ◽  
Inflation Targeting ◽  
Banking System ◽  
Practical Implementation ◽  
Development Scenarios ◽  
Dynamic Stochastic ◽  
Low Efficiency ◽  
Traditional Approaches ◽  
The Impact

The publication is concerned with highlighting the results of the carried out analysis of the existing practice of developing macroeconomic models directed towards determining the main parameters of monetary policy of central banks, as well as assessing their impact on the indicators of financial stability of the banking system. Given the low efficiency of the traditional approaches to the formation of the monetary rule both in countries with developed market economies and in countries with small open economies (in particular, Taylor rule), possible ways to solve this problem are proposed taking into account the existing experience in shaping monetary policy parameters in the context of inflation targeting, which is already available at the NBU. The strengths and weaknesses of the main approaches to the modeling of the monetary transmission mechanism, as well as the forecasting of its impact on the financial stability of the banking system, which are used in the formation of basic and auxiliary models of the central bank, are analyzed. Particular attention is paid to structural econometric models, vector autoregression models and dynamic stochastic models of general equilibrium. As a result, a possible variant for developing an approach to macroeconomic modeling is proposed, in the framework of which assessment and analysis of the impact of monetary policy on the indicators of financial stability of the banking system is envisaged. The practical implementation of this approach makes it possible to develop models for assessing and analyzing the efficiency of the current monetary policy, projecting macroeconomic development scenarios in the short and medium term, which will both directly and indirectly determine the indicators of financial stability of the banking system.

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