Browsing by Subject "inflaatiotavoite"

Sort by: Order: Results:

Now showing items 1-12 of 12
  • Honkapohja, Seppo; Mitra, Kaushik (2015)
    Bank of Finland Research Discussion Papers 9/2015
    Published in Manchester School, Volume 83, Issue Supplement S2, pages 27–59, September 2015
    We examine global dynamics under learning in New Keynesian models with price level targeting that is subject to the zero lower bound. The role of forward guidance is analyzed under transparency about the policy rule. Properties of transparent and non-transparent regimes are compared to each other and to the corresponding cases of inflation targeting. Robustness properties for different regimes are examined in terms of the domain of attraction of the targeted steady state and volatility of inflation, output and interest rate. We analyze the effect of higher inflation targets and large expectational shocks for the performance of these policy regimes.
  • Eo, Yunjong; McClung, Nigel (2021)
    Bank of Finland Research Discussion Papers 14/2021
    We evaluate and compare alternative monetary policy rules, namely average inflation targeting, price level targeting, and traditional inflation targeting rules, in a standard New Keynesian model that features recurring, transient zero lower bound regimes. We use determinacy and expectational stability (E-stability) of equilibrium as the criteria for stabilization policy. We find that price level targeting policy, including nominal income targeting as a special case, most effectively promotes determinacy and E-stability among the policy frameworks, whereas standard inflation targeting rules are prone to indeterminacy. Average inflation targeting can induce determinacy and E-stability effectively, provided the averaging window is sufficiently long.
  • Välimäki, Tuomas (2021)
    Bank of Finland Bulletin. Blog
    The symmetry of the guideline for the monetary policy stance has recently attracted considerable attention in central banks’ communications. Both the Fed and the ECB have, in their recent strategy reviews, laid out that their preferences are symmetric about the inflation target of 2%. Indeed, the calibration of the inflation target was a key part of the ECB’s strategy review that was published in July.
  • Kilponen, Juha; Kontulainen, Jarmo (2021)
    Bank of Finland. Bulletin 4/2021
    The ECB’s revised monetary policy strategy has now been adopted. The new 2% inflation target is clear and unambiguous. The target is symmetric, meaning both negative and positive deviations of inflation from the target are considered as equally undesirable. Commitment to the symmetric inflation target requires especially forceful or persistent monetary policy measures when interest rates are close to their effective lower bound. This may imply a transitory period in which inflation is moderately above target. A medium-term orientation with the inflation target also allows the ECB to emphasise sustainable growth and full employment in its decision-making. In its monetary policy, the ECB also takes into account environmental sustainability, in line with the new climate-related action plan.
  • Kilponen, Juha; Kontulainen, Jarmo (2021)
    Euro & talous 4/2021
    EKP:n uudistettu rahapolitiikan strategia on otettu käyttöön. Uusi 2 prosentin inflaatiotavoite on yksiselitteinen ja selkeä. Tavoite on symmetrinen, mikä tarkoittaa, että sitä hitaampaa ja nopeampaa inflaatiota pidetään yhtä kielteisinä. Sitoutuminen symmetriseen inflaatiotavoitteeseen edellyttää erityisen voimakkaita tai pitkäaikaisia rahapolitiikan toimia korkojen ollessa nollan tuntumassa. Tämä voi merkitä, että inflaatio ylittää tavoitteen väliaikaisesti. Keskipitkälle aikavälille määritelty tavoite mahdollistaa myös kestävän kasvun ja täystyöllisyyden painottamisen päätöksenteossa. EKP huomioi myös rahapolitiikassa ympäristön kestävyyden uuden toimintasuunnitelman mukaisesti.
  • Honkapohja, Seppo (2015)
    Bank of Finland Research Discussion Papers 18/2015
    Published in Empirica, Issue 2, 1 May (2016): 235-256
    ​Many central banks have lowered their interest rates close to zero in response to the crisis since 2008. In standard monetary models the zero lower bound (ZLB) constraint implies the existence of a second steady state in addition to the inflation-targeting steady state. Large scale asset purchases (APP) have been used as a tool for easing of monetary policy in the ZLB regime. I provide a theoretical discussion of these issues using a stylized general equilibrium model in a global nonlinear setting. I also review briefly the empirical literature about effects of APP’s.
  • Łyziak, Tomasz; Paloviita, Maritta (2018)
    Economic Modelling June
    Published in Bank of Finland Research Discussion Papers 13/2017.
    Studying formation of inflation expectations in the euro area we propose a novel method, integrating rational, adaptive and sticky-information models. We find that in recent turbulent times, formation of inflation expectations by professional forecasters has displayed less inertia with the increased role of the perceived inflation target. Despite its slightly negative trend observed recently, the perceived target has remained broadly consistent with the ECB's announced inflation target. The direct impact of ECB inflation projections on expectations is minor, but growing marginally. However, inflation expectations remain consistent with the views and preferences of the ECB, which suggests effective management of expectations. Our results have implications for the conduct of ECB monetary policy, emphasising the need to monitor risks for price stability and expectations' de-anchoring in the context of complex models of their formation and for macroeconomic modelling, stressing the need to analyse monetary policy communication and changes in expectation formation over time.
  • Pikkarainen, Ville (2021)
    Euro & talous. Analyysi
    Yhdysvaltain inflaatio on kiihtynyt reiluun 5 prosenttiin. Nopea inflaatio selittyy pääosin väliaikaisilla tekijöillä kuten yksityisautojen polttoaineiden ja käytettyjen autojen voimakkaalla hinnannousulla vuoden takaisesta. Pandemiasta toipuminen ja talouden avautuminen on kuitenkin johtanut tarjontapullonkauloihin tavaroiden tuotannossa ja kuljetuksessa sekä työmarkkinoiden osittaiseen kiristymiseen. Nämä tekijät ylläpitävät epävarmuutta ja voivat pitkittyessään johtaa inflaation pysymiseen keskuspankin 2 prosentin tavoitetta nopeampana ennakoitua pidempään, mutta kuitenkin vain väliaikaisesti.
  • Paloviita, Maritta; Haavio, Markus; Jalasjoki, Pirkka; Kilponen, Juha; Vänni, Ilona (2020)
    Bank of Finland Research Discussion Papers 12/2020
    Published in VoxEU 28.7.2020 https://voxeu.org/article/reading-between-lines-ecbs-introductory-statements
    We apply textual analysis to extract the tone (sentiment) from the introductory statements to the ECB’s press conferences regarding economic outlook. By combining this information with Eurosystem/ECB staff macroeconomic projections, we are able to directly estimate the Governing Council’s loss function. Our analysis suggests that prior to the new monetary policy strategy announced in July 2021, the de facto inflation aim of the ECB may have been considerably below 2%. We also find evidence that the loss function has been asymmetric, which would mean that the ECB has been more averse to inflation above 2% than below 2%. The ECB’s new definition of price stability implies a symmetric loss function with a bliss point at 2.0%. Hence our results indicate that the new strategy will bring about a clear change in the Governing Council’s policy preferences.
  • Välimäki, Tuomas (2021)
    Euro & talous. Blogi
    Rahapolitiikan mitoituksen ohjenuorana toimivan inflaatiotavoitteen symmetrisyys on viime vuosina saanut paljon huomiota keskuspankkien viestinnässä. Uskon, että keskustelu jatkuu euroalueella kuluvan kesän ja alkusyksyn mittaan, kun Euroopan keskuspankki (EKP) julkistaa uudistetun strategiansa. Keskeinen osa uudistusta on inflaatiotavoitteen määritelmän tarkentaminen.
  • Suomen Pankki (2007)
    "Pääkirjoitus Rahapolitiikan välittymismekanismiin liittyvän luottokanavan uudelleenarviointi Rahoitusjärjestelmien stressitestaus: BKT:n kasvun riskit dynaamisessa stokastisessa yleisen tasapainon mallissa Inflaatiotavoite, valuuttakurssi ja rahan määrä Venäjällä"
  • Crowley, Patrick M.; Hudgins, David (2019)
    Bank of Finland Research Discussion Papers 11/2019
    It is widely recognized that the policy objectives of fiscal and monetary policymakers usually have different time horizons, and this feature may not be captured by traditional econometric techniques. In this paper, we first decompose U.S macroeconomic data using a time-frequency domain technique, namely discrete wavelet analysis. We then model the behavior of the U.S. economy over each wavelet frequency range and use our estimated parameters to construct a tracking model. To illustrate the usefulness of this approach, we simulate jointly optimal fiscal and monetary policy with different short-term targets: an inflation target, a money growth target, an interest rate target, and a real exchange rate target. The results determine the reaction in fiscal and monetary policy that is required to achieve an inflation target in a low inflation environment, and when both fiscal and monetary policy are concerned with meeting certain economic growth objectives. The combination of wavelet decomposition in an optimal control framework can also provide a new approach to macroeconomic forecasting.