Inflation, Nominal Interest Rates, and the Variability of Output:
This paper examines the distribution of output around capacity when money demand is a nonlinear function of the nominal interest rate such that nominal interest rates cannot become negative. When fluctuations in output result primarily from disturbances to the money market, the variance of output is...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1996
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Schriftenreihe: | IMF Working Papers
Working Paper No. 96/109 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper examines the distribution of output around capacity when money demand is a nonlinear function of the nominal interest rate such that nominal interest rates cannot become negative. When fluctuations in output result primarily from disturbances to the money market, the variance of output is shown to be an increasing function of the trend inflation rate. When they result from disturbances to the goods market, the variance of output is a decreasing function of the trend inflation rate. When both disturbances are significant, there exists, in general, a critical non-zero trend inflation rate that minimizes the variance of output |
Beschreibung: | 1 Online-Ressource (36 p) |
ISBN: | 1451853165 9781451853162 |
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index_date | 2024-07-03T20:13:19Z |
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spelling | Chadha, Bankim Verfasser aut Inflation, Nominal Interest Rates, and the Variability of Output Chadha, Bankim Washington, D.C International Monetary Fund 1996 1 Online-Ressource (36 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 96/109 This paper examines the distribution of output around capacity when money demand is a nonlinear function of the nominal interest rate such that nominal interest rates cannot become negative. When fluctuations in output result primarily from disturbances to the money market, the variance of output is shown to be an increasing function of the trend inflation rate. When they result from disturbances to the goods market, the variance of output is a decreasing function of the trend inflation rate. When both disturbances are significant, there exists, in general, a critical non-zero trend inflation rate that minimizes the variance of output Online-Ausg Tsiddon, Daniel Sonstige oth http://elibrary.imf.org/view/IMF001/03587-9781451853162/03587-9781451853162/03587-9781451853162.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Chadha, Bankim Inflation, Nominal Interest Rates, and the Variability of Output |
title | Inflation, Nominal Interest Rates, and the Variability of Output |
title_auth | Inflation, Nominal Interest Rates, and the Variability of Output |
title_exact_search | Inflation, Nominal Interest Rates, and the Variability of Output |
title_exact_search_txtP | Inflation, Nominal Interest Rates, and the Variability of Output |
title_full | Inflation, Nominal Interest Rates, and the Variability of Output Chadha, Bankim |
title_fullStr | Inflation, Nominal Interest Rates, and the Variability of Output Chadha, Bankim |
title_full_unstemmed | Inflation, Nominal Interest Rates, and the Variability of Output Chadha, Bankim |
title_short | Inflation, Nominal Interest Rates, and the Variability of Output |
title_sort | inflation nominal interest rates and the variability of output |
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