Essays on empirical macroeconomics

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dc.contributor Suomen Pankki Mehrotra, Aaron 2014-09-22T09:55:29Z 2014-09-22T09:55:29Z 2006
dc.identifier.isbn 952-462-290-4
dc.identifier.issn 1456-5951
dc.description.abstract This thesis consists of four essays in empirical macroeconomics. The first three essays examine the conduct of monetary policy during a disinflationary and deflationary era, with the policy interest rates close to or at the zero bound.The questions of interest include the potency of the interest rate channel, the stability of broad money demand, and the possibility to use the exchange rate channel in order to affect economic activity and the price level.We use time series econometrics techniques, mainly vector autoregressions, focusing on Japan.While we find that basic relationships between the variables appear unaltered by deflation, a further stimulative impact is difficult to implement once the zero bound is hit.This can be due to political reasons, as in the case of introducing a tax on currency in order to bring about negative interest rates, or because the needed stimulus is very big, as in the case of yen depreciation to increase the price level.The last essay focuses on the fiscal policy aspects of the European Union's most recent enlargement.We examine whether the fiscal austerity required by the Maastricht criteria and the Stability and Growth Pact would be harmful for the socio-economic development of the new Member States.Introducing an indicator for socio-economic development and utilizing instrumental variables regressions, we find that fiscal retrenchment, including a lower level of public debt, would be advantageous for development.A policy implication is to maintain the Stability and Growth Pact or an equivalent intergovernmental fiscal rule to curb public spending and debt. Keywords: deflation, disinflation, zero lower bound, broadly defined liquidity, socio-economic development, Stability and Growth Pact, EU enlargement
dc.format.extent 243 s.
dc.language.iso eng
dc.publisher Edita Prima
dc.relation.ispartofseries Bank of Finland. Scientific monographs. E
dc.subject makrotaloustiede
dc.subject rahapolitiikka
dc.subject inflaatio
dc.subject deflaatio
dc.subject tavoitteet
dc.subject Japani
dc.subject mallit
dc.subject keskuspankit
dc.subject hinnat
dc.subject likviditeetti
dc.subject rahan määrä
dc.subject rahan kysyntä
dc.subject estimointi
dc.subject Kiina
dc.subject valuutat
dc.subject valuuttakurssit
dc.subject korot
dc.subject EU
dc.subject finanssipolitiikka
dc.subject opinnäytteet
dc.subject SP
dc.subject Bofit-kokoelma
dc.subject VAR
dc.subject Hong Kong
dc.subject RP ST
dc.subject uudet EU-maat
dc.subject RP
dc.title Essays on empirical macroeconomics
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-201408071687 Bank of Finland studies. E
dc.series.number 34
dc.series.sortingnumber 0034 1.2.2006
dc.type.okm G4

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