at view this as a temporary shock, and hence
which major swings in inflation are about to adjust their expectations of future short-term
develop. We use the probabilistic inference from rates by less than [...] contains the estimation results and a component and its effect on the real rates. If the
discussion of their implications for German tightening is viewed as a credible commitment
business cycle analysis. Section [...] the
evidence on Germany and the European Monetary Union. 3-month and 1-month money market rates. Their per-
5For a detailed argument, relating to the 6-month commer- formance was similar, if not slightly
after a while to modify their
liquidity management correspondingly; (2) in the course of the first 18 months, some national
central banks revised their arrangement with their Treasury, also in view of [...] undertakes a similar
analysis of the demand and supply of factors of Federal Reserve deposits and their dynamic
interaction. As far as possible, we follow Hamilton�s line of reasoning. Nevertheless, some [...]
In a second step we cover the interaction between supply and demand factors for deposits and their
price in the form of the spread between the overnight rate and the main refinancing rate of the
Eurosystem
equation can be
derived by inverting (5.2) and replacing output, the interest rate and the
residual by their equilibrium values (yt � y�t ; it � i�; ut � 0). The long-run or
equilibrium rate of inflation implied [...] Ltd 2001
F. Seitz and K.-H. ToÈdter
page
geer-seitz 7.6.01 14:30
output growth by their current estimates and forecasts, respectively, we obtain
an expression for the monetary target for [...] the
credibility of the inflation targeting central bank that publishes them, leading
agents to base their inflation expectations on other sources of information'
(Leitemo, 2000, p. 32). Moreover, in an o
banking supervision which function adds to their total staffing.
12 For most central banks the reason to combine research and conjunctural activities is related to their relative small
size. For some central [...] experience of the institutions
making up the Eurosystem and the fact that it is their constituencies who assess their
performance cannot be forgotten. In the case of the Eurosystem, some of the principles [...] contributors on topics which are of special interest to the OeNB. To ensure the high quality of
their content, the contributions are subjected to an international refereeing process. The
opinions are
the
market for government securities. Over time, a few of the Reserve Banks began to coordinate their
purchases and sales. The Banking Act of 1933 formalized the FOMC as an entity, consisting of the [...] relationship of the monetary aggregates to spending, the behavior of the ag-
gregates relative to their annual ranges will likely be of limited use in guiding policy
(...), and the Federal Reserve will
could also report that their suppliers usually did not offer discounts at all. It
is not clear how this case should be interpreted. Suppliers may not offer discounts because their
clients are not c [...] average. Additionally
constrained firms have a higher variance of sales growth and both their profitability and their
equity ratio are lower. They are younger, less likely to belong to an industry group [...] criticize that the traditional studies a la Fazzari, Hubbard and Petersen never verified whether
their sample split criteria and hence cash flow sensitivity of investment indeed have something to
do
the question (firms were asked whether ‘labour-saving technical progress’ had an
influence on their employment plans). König/Buscher/Licht (1995), on the other hand, find a
positive effect of process [...] observations is also the basis for the econometric estimation.
15 König/Buscher/Licht (1995) use for their study the Mannheim Firm Panel of the Centre for European
Economic Research (ZEW), which contains similar
increase in import demand. If the firms were not
able to transfer the cost increases to their prices, their real profits would decline and thus also the
consumption and investment demand that is dependent [...] varied in the long-run (typically in some variant of a flexible accelerator).
If firms minimise their short-run production costs at given input prices and given levels of out-
put and capital there [...] unit of capital) must correspond in optimum to its one-period user cost qk .
If all inputs are at their long-run equilibrium, the long-run total costs can be described as the
sum of the variable costs
the relationship of the monetary aggregates to spending, the behavior
of the aggregates relative to their annual ranges will likely be of limited use in guiding po-
licy (...), and the Federal Reserve will
current level of income, any attempt to
increase the money supply leads them to adjust their portfolios to limit their money holdings.
These portfolio changes lead to changes in relative yields on financial [...] in shaping the dynamic behaviour of
output, inflation and interest rates. A distinctive feature of their VAR analysis is that both the variables included in
the system and the identifying restrictions used [...] production as a proxy for real activity, real M1, the term spread and
inflation. The major result of their paper is that the combined contribution of these monetary
disturbances for real economic fluctuations
diese Funktionen
zu erfüllen ist eine Variation der Mindestreservesätze nicht zielführend.
„In their analysis most economists have assumed that Central Banks „exogenously“ set
the high-powered monetary
digen. „… investors will miss no opportunity to test the resolve of go-
vernments in maintaining their exchange rate target.“20 Auslöser ist, dass
eine Währung unter Abwertungsverdacht gerät. Ein Spekulant
candidates for foreign holdings. By contrast, in the subset of
the other countries considered in their study, the tax ratio has a much larger
and significant effect, especially for high denomination notes [...] discount factor and
p(*) is the home (foreign) price level. Residents of the foreign country de-
mand their own currency cuf and the (stable and widely accepted) currency
cu. The variable cu
f
* represents [...] to the foreign country. Residents of this country hold both
the home currency (the euro) cu and their legal tender cu
f
. In order not to
overcomplicate issues we do not take into account possible
long-time operation of an electrolyzer, including the starting phase until the operating parameters reach
their final values. Filled circles: low-frequency resistance and capacitance (1 Hz). Empty squares: hig
the use of currency for domestic transactions combines data on
currency flows and their composition with their seasonal pattern in the course of a year. Finally,
a third method for estimating the [...] the use of currency for domestic
transactions combines data on currency flows and their composition with their seasonal pattern
in the course of a year (see Kimball, 1981, for an early attempt in [...] are also indications
that non-euro area residents substituted their euro legacy banknotes for euro-denominated
deposits in their home countries.69 According to a survey conducted by the ECB in c
much uncertainty to their staff’s estimates
of the output gap that they all but ignored them and relied on other or additional
indicators of economic activity? If so, did their reliance on these other [...] estimates of the baseline reaction function
with real-time data
Table 10 Monetary targets and their implementation
Table 11 Parameter estimates of the reaction function with
additional variables [...] long-run equilibrium level in response to departures of either expected inflation or
output from their respective targets. Specifically:
( ) ( ) ( )tttntnttntt yEEßrEi Ω+Ω−−+=Ω− +++ γπππ )()1( ** ,
n. „ ... investors will miss no opportu-
nity to test the resolve of governments in maintaining
their exchange rate target“23. Auslöser ist, dass eine
Währung unter Abwertungsverdacht gerät. Ein Spe-
▲Fig. 1: Supercapacitor development by the University of
Applied Sciences in Amberg and their partners.
Re B
Sinewave
generator
Im B
?
Bdc + B sin (ωt + φ) + harmonic distortion
output y is produced by employing the input factors labour L and
capital K . If firms minimize their production costs at given input prices and for a given level of
output, there exists under weak
captures the Bundesbank’s monetary policy remarkably well. However, their
analysis is based on ex-post revised data. We try to replicate their results under more
realistic informational assumptions. Ideally [...] long-run equilibrium
level in response to departures of either expected inflation or output from their respective
targets. Furthermore, they assume that the actual rate adjusts only partially to the target [...] quantitative assessment of the economic outlook.
Staff forecasts of inflation and output do exist, but their semi-annual frequency and varying
time horizons render them unsuitable for our purposes. Therefore
many changes are taking place quite rapidly or have already
been factored by market players into their decisions. These changes involve institutional aspects, the
operational level of the money market [...] also for persons working at
banks and other financial sector institutions who seek to deepen their knowledge of European
monetary policy.
We wish to thank Dr. Caroline Willeke of the Deutsche
discussed.
The second section of Chapter II discusses various monetary policy strategies and their adequacy to
the Eurosystem. A monetary policy strategy is defined as the basic thrust of monetary [...] marginal lending facility and the
deposit facility. The individual instruments are described, and their effects characterised, using the
consolidated balance sheet, the "financial statement", of the
many changes are taking place quite rapidly or have already
been factored by market players into their decisions. These changes involve institutional aspects, the
operational level of the money market [...] also for persons working at
banks and other financial sector institutions who seek to deepen their knowledge of European
monetary policy.
We wish to thank Dr. Caroline Willeke of the Deutsche
discussed.
The second section of Chapter II discusses various monetary policy strategies and their adequacy to
the Eurosystem. A monetary policy strategy is defined as the basic thrust of monetary [...] marginal lending facility and the
deposit facility. The individual instruments are described, and their effects characterised, using the
consolidated balance sheet, the "financial statement", of the
and the United States, which
aim to reduce the problems of mismatches between the duration of their assets and
liabilities. It is generally perceived that these regulatory changes will favor the [...] level, interest rates should be determined by the supply of and the
demand for loanable funds and their determinants including the production
opportunities in the economy (depending on technological [...] consider the monetary aggregates M1, M2 and MZM and construct growth rates
as well as money gaps as their difference between the actual development and
trend. And finally we take into account the stock