scholarly journals Credibility Dynamics and Disinflation Plans

2020 ◽  
Vol 20 (85) ◽  
Author(s):  
Rumen Kostadinov ◽  
Francisco Roldán
Keyword(s):  
Optimal Design ◽  
Central Bank ◽  
Private Economy ◽  
Central Banker ◽  
Dynamic Incentives ◽  
Negative Drift ◽  
Inflation Inertia ◽  
The Way

We study the optimal design of a disinflation plan by a planner who lacks commitment. Having announced a plan, the Central banker faces a tradeoff between surprise inflation and building reputation, defined as the private sector's belief that the Central bank is committed to the plan. Some plans are harder to sustain: the planner recognizes that paving out future grounds with temptation leads the way for a negative drift of reputation in equilibrium. Plans that successfully create low inflationary expectations balance promises of lower inflation with dynamic incentives that make them more credible. When announcing the disinflation plan, the planner takes into account these anticipated interactions. We find that, even in the zero reputation limit, a gradual disinflation is preferred despite the absence of inflation inertia in the private economy.

3 Payment

2015 ◽  
Author(s):  
Bamford Colin
Keyword(s):  
Central Bank ◽  
The Uk ◽  
The Eu ◽  
The Way

The chapter examines the process of payment, both as a description of the way in which a monetary obligation is discharged, and as a process by which money is transmitted from one person to another. In the former case, the chapter describes the operation of set-off, netting, consolidation of accounts, and the operation of running accounts. In the latter case, it deals with the mechanisms for payment in the UK, internationally and at the level of the EU through the TARGET2 system, focusing in each case on the process of clearing through the central bank of the currency concerned.

The Suit Pattern Optimal Design Based on the Features of Middle-Aged Women’s Body Shape

2012 ◽  
Vol 215-216 ◽  
pp. 544-546
Author(s):  
Bin Lin
Keyword(s):  
Optimal Design ◽  
Body Shape ◽  
The Body ◽  
Middle Aged ◽  
Body Type ◽  
Pattern Design ◽  
Pattern Structure ◽  
Reference Parameters ◽  
The Way

The current clothes for standard body type are difficult to meet the middle-aged female. Through measuring and analysising the body for the middle-aged female (40 - 59years old) and the dataes，this paper offers a statistics summary. Aiming at the defects in the applying female suit，we adjust the reference parameters of pattern structure and improve the way of processing. The conclusion can be the guidance for pattern design of special type suit.

Alexander Hamilton, Central Banker: Crisis Management during the U.S. Financial Panic of 1792

2009 ◽  
Vol 83 (1) ◽  
pp. 61-86 ◽  
Author(s):  
Richard Sylla ◽  
Robert E Wright ◽  
David J Cowen
Keyword(s):  
Central Bank ◽  
Crisis Management ◽  
Financial Market ◽  
Political Systems ◽  
Alexander Hamilton ◽  
Central Banker ◽  
Financial Panic ◽  
Management Techniques ◽  
The U.S

Most scholars know little about the panic of 1792, America's first financial market crash, during which securities prices dropped nearly 25 percent in two weeks. Treasury Secretary Alexander Hamilton adroitly intervened to stem the crisis, minimizing its effect on the nascent nation's fragile economic and political systems. U.S. policymakers soon forgot the crisis-management techniques Hamilton invented but failed to codify. Many of them were later rediscovered and became theoretical and practical standards of modern central-bank crisis management. Hamilton, for example, formulated and implemented “Bagehot's rules” for central-bank crisis management eight decades before Walter Bagehot wrote about them inLombard Street.

The World's First Biometric Money: Ghana's E-Zwich and the Contemporary Influence of South African Biometrics

Africa ◽  
2010 ◽  
Vol 80 (4) ◽  
pp. 642-662 ◽  
Author(s):  
Keith Breckenridge
Keyword(s):  
West Africa ◽  
Central Bank ◽  
South African ◽  
Money Supply ◽  
Historical Anthropology ◽  
The South ◽  
African Countries ◽  
Civil Registration ◽  
The Rich ◽  
The Way

ABSTRACTIn January 2008 the Ghanaian Central Bank announced that it had introduced a new centralized mechanism for the settlement of transactions between the Ghanaian banks. This interbank switch, as it was called, was purchased from, and managed by, the South African company Net 1 UEPS, and it had a unique central organizing principle. The switch was indexed biometrically, using a key derived from the ten fingerprints of account holders. This new interbank switch and a smartcard encoded in the same way has equipped Ghana with the world's first biometric money supply. This article is an effort to explain the development and significance of this biometric money, which Ghanaians call the e-Zwich. It traces the way in which biometric registration in Ghana (as in other African countries) has leaked from the mundane, difficult, and mostly unrewarding, task of civil registration into the more properly remunerated domain of monetary transactions. Viewed in the light of the rich historical anthropology of money in West Africa, what is at stake in Ghana may be much more significant than any of the current participants fully realize. Perhaps the most interesting finding of this study is that the e-Zwich system might actually succeed.

Public investment, inflation persistence and central bank independence

2017 ◽  
Vol 44 (6) ◽  
pp. 976-986 ◽  
Author(s):  
Stephanos Papadamou ◽  
Eleftherios Spyromitros ◽  
Panagiotis Tsintzos
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Central Bank ◽  
Public Investment ◽  
Central Bank Independence ◽  
Inflation Persistence ◽  
Content Type ◽  
Central Banker ◽  
Long Run ◽  
The Uk

Purpose The purpose of this paper is to investigate, both theoretically and empirically, the institutional setting of monetary policy making that mitigates the effects of productive public investment on inflation persistence. Design/methodology/approach In the theoretical approach, the authors consider a simple monetary game model à la Barro-Gordon introducing, apart from stochastic output shocks, indexed wage contracts and public investment effects. Then, the authors empirically produce inflation persistence and public investment persistence by estimating a first-order autoregressive model in a fixed rolling window of 36 months for the UK and also use a dummy in order to incorporate the regime switch in monetary policy since 1997, giving a clear increase in the level of central bank independence. Findings The theoretical framework suggests that an independent central banker could better manage inflation expectations and therefore inflation persistence despite the occurrence of persistent public investment shocks. From the perspective of fiscal policy, the appointment of a conservative and independent central banker could absorb adverse effects on inflation dynamics resulting from persistent expansionary fiscal policies. Empirical evidence in the UK indicates that the creation of an independent monetary policy committee reduces the positive link between public investment and inflation persistence. Practical implications From a monetary policy perspective view, the best response to public investment policies is to increase the degree of independence to alleviate effects on inflation dynamics. From the perspective of fiscal policy, an independent central banker can provide the necessary conditions to undertake a long-run public investment plan, since long-run growth will not be undermined by adverse inflation inertia. Originality/value The authors introduce, in the debate of inflation persistence, both theoretically and empirically, the role of public investment and monetary policy design.

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