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Communication of Central Bank Thinking and Inflation Dynamics / Man-Keung Tang, Xiangrong Yu.

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Format:
Book
Government document
Author/Creator:
Tang, Man-Keung.
Contributor:
Yu, Xiangrong.
Series:
IMF Working Papers; Working Paper ; No. 2011/209
IMF Working Papers
Language:
English
Subjects (All):
Monetary policy--Mexico--Econometric models.
Monetary policy.
Inflation targeting--Mexico--Econometric models.
Inflation targeting.
Physical Description:
1 online resource (54 p.)
Place of Publication:
Washington, D.C. : International Monetary Fund, 2011.
Language Note:
English
Summary:
This paper studies the role of central bank communication of its economic assessment in shaping inflation dynamics. Imperfect information about the central bank's assessment - or the basis for monetary policy decisions - could complicate the private sector's learning about its policy response function. We show how clear central bank communication, which facilitates agents' understanding of policy reasoning, could bring about less volatile inflation and interest rate dynamics, and afford the authorities with greater policy flexibility. We then estimate a simple monetary model to fit the Mexican economy, and use the suggested paramters to illustrate the model's quantitative implications in scenarios where the timing, nature and persistence of shocks are uncertain.
Contents:
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; Literature Review; II. The Model; III. Data and Estimation; Mexico's Inflation Regime; Data for Mexico; Estimation Results; IV. Simulations of Stylized Scenarios; Calibration; The Effect of Uncertainty About "q"; Imperfect Information Regarding the Central Bank's Economic Assessment; V. Concluding Remarks; References; Footnotes
Notes:
Description based upon print version of record.
Includes bibliographical references.
Description based on online resource; title from PDF title page (ebrary, viewed September 24, 2014).
ISBN:
9786613874467
9781463935573
1463935579
9781463902773
1463902778
9781283562010
1283562014
9781463930325
1463930321

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