Cover -- Half-title -- Title -- Copyright -- Contents -- Figures -- Tables -- Contributors -- Acknowledgements -- URL disclaimer -- 1 Introduction: the transmission mechanism and monetary policy -- 1.1 How does the central bank analyse the transmission mechanism? -- 1.2 How can we derive the policy implications? -- 1.3 What makes a good model for analysing the transmission mechanism? -- 1.4 How can these difficulties in modelling the transmission mechanism affect monetary policy in practice? -- 1.5 What are the implications of practical difficulties for monetary policy modelling? -- 1.6 Putting this approach into practice -- 1.6.1 The monetary sector -- 1.6.2 Exchange rates -- 1.7 Conclusion -- Appendix -- Information -- Notes -- 2 Are the effects of monetary policy in the euro area greater in recessions than in booms? -- 2.1 Introduction -- 2.2 Is there a common cycle in the euro area? -- 2.3 The asymmetric effects of area-wide monetary policy shocks -- 2.3.1 A monetary policy VAR for the euro area -- 2.3.2 Monetary policy shocks in the multivariate MSM model -- 2.4 Are the monetary policy effects different across countries? -- 2.5 Does monetary policy change the likelihood of a recession? -- 2.6 Conclusions -- Acknowledgements -- Notes -- 3 Supply shocks and the 'natural rate of interest': an exploration -- 3.1 Introduction -- 3.2 The real rate of interest: some observations -- 3.3 An open economy model -- 3.3.1 The representative agent -- 3.3.2 The representative firm -- 3.3.3 The linearised model -- 3.3.4 The model with variable capacity utilisation -- 3.3.5 The linearised equations -- 3.4 The steady state of the model -- 3.5 Results -- 3.5.1 Wicksellian flavours -- 3.6 Concluding remarks -- Acknowledgements -- Notes -- 4 Some econometric issues in measuring the monetary transmission mechanism, with an application to developing countries.

4.1 Introduction -- 4.2 The structure of the transmission mechanism -- 4.2.1 Statistical structure -- 4.2.2 Economic structure -- 4.3 Average estimates -- 4.4 Dispersion -- 4.5 Explanations -- 4.6 Conclusions -- Appendix 1: the Swamy random coefficient model estimator -- Appendix 2: data -- Appendix 3: tables of results -- Acknowledgements -- Note -- 5 Central bank goals, institutional change and monetary policy: evidence from the United States and the United Kingdom -- 5.1 Introduction -- 5.2 Invariance tests -- 5.3 The monetary transmission mechanism: Bayesian VAR estimates -- 5.3.1 Standard VAR analysis -- 5.3.2 Bayesian VAR analysis -- 5.4 Conclusions -- Appendix 1: invariance/superexogeneity tests -- Appendix 2: data -- Acknowledgements -- Notes -- 6 The transmission mechanism of monetary policy near zero interest rates: the Japanese experience, 1998-2000 -- 6.1 The nature of the 1997-98 recession -- 6.2 The monetary policy response to the credit crunch -- 6.3 The adoption of the zero interest rate policy -- 6.4 The transmission channels of the ZIRP -- 6.5 The end of the ZIRP -- 6.5.1 Arguments against the rate hike -- 6.5.2 Arguments for the rate hike -- 6.6 Some final comments -- 6.7 Acknowledgements -- Notes -- 7 What does the UK's monetary policy and inflation experience tell us about the transmission mechanism? -- 7.1 Introduction -- 7.2 Aggregate supply: the Phillips curve and potential output -- 7.2.1 Why did the Great Inflation of the 1970s happen? -- 7.2.2 Is the Phillips curve consistent with inflation being a monetary phenomenon? -- 7.2.3 Measurement of potential output -- 7.3 The IS relationship in the United Kingdom: an empirical puzzle -- 7.4 Conclusions -- Acknowledgements -- Notes -- 8 Modelling the transmission mechanism of monetary policy.

9 Empirical evidence for credit effects in the transmission mechanism of the United Kingdom -- 9.1 Introduction -- 9.2 A framework for modelling credit markets -- 9.2.1 Private non-financial corporations (PNFCs) -- 9.2.2 Banks -- 9.2.3 Households -- 9.2.4 Financial market clearing -- 9.2.5 Real expenditure -- 9.2.6 Other financial corporations -- 9.3 Econometric methodology -- 9.3.1 A dynamic model for the PNFC and household sectors -- 9.3.2 Introducing the OFC sector -- 9.4 Empirical results -- 9.4.1 Private non-financial corporations -- 9.4.2 Households -- 9.4.3 Credit from other financial corporations (OFCs) -- 9.5 Conclusions -- Acknowledgements -- Notes -- 10 Uncovered interest parity with fundamentals: a Brazilian exchange rate forecast model -- 10.1 Introduction -- 10.2 The Central Bank of Brazil exchange rate forecast models -- 10.3 UIP with fundamentals: the five-equation model -- 10.4 The system solution -- 10.5 Simulations -- 10.6 Conclusions and final remarks -- Appendix -- Acknowledgements -- Notes -- 11 Uncovered interest parity and the monetary transmission mechanism -- 11.1 Introduction -- 11.2 Conceptual issues regarding UIP -- 11.3 Empirical tests of the 'unbiasedness' hypothesis -- 11.3.1 Fama's puzzles -- 11.3.2 Recent evidence on UIP -- 11.4 Explaining the failure of UIP -- 11.4.1 McCallum's model -- 11.4.2 An extended model -- 11.4.3 Implications for monetary transmission -- 11.5 Future exchange rates, UIP and monetary transmission -- 11.6 UIP and the liquidity trap -- 11.7 Concluding remarks -- Notes -- Bibliography -- Index.

This book explains different aspects of the transmission mechanism for monetary policy, using international data and examples.

Description based on publisher supplied metadata and other sources.

Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.