Browsing by Subject "Monetary policy"
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Item Additional econometric tests of the policy ineffectiveness proposition(Texas Tech University, 1989-08) Shammout, Luai AminThis study develops a methodology for empirically analyzing rational expectations models displaying the neutrality result and then applies it to the important question of whether anticipated monetary policy matters to the business cycle. The study contains a review of literature in rational expectations theory, as well as its policy implications. A vector autoregressive (VAR) estimation technique is employed to test the hypothesis of whether anticipated monetary policy matters. The procedure used in this study amounts to running multivariate Granger tests. However, the issue here is the predictive content of information, which is what Granger tests are really meant to analyze, and it does not involve the tricky concept and issue of economic causality. Empirical results affirm the alternative hypothesis that combines long-run monetary neutrality with the gradual adjustment of money supply in the short run. However, this study fails to combine long-run monetary neutrality with the gradual adjustment of prices. A Chow test has been performed in order to test for any structural change in the model over time. A test over two equal subperiods proves the stability of coefficients, and hence, the data can be pooled. However, a test over the post-1979 data proves that 1979 was a turning point, and hence, the economy experienced a shift in structure in 1979 which was due to changing operating procedure by the Federal Reserve System. Given this study's main results, we believe that anticipated monetary policy does matter, and hence, there is room for stabilizing monetary policy. A variety of applications to this study has been discussed, mainly in the areas of financial market behavior, interest rates and stock market prices.Item Item Essays on exchange rate regimes and international financial crises(2002) Hernandez-Verme, Paula Lourdes; Smith, Bruce D.; Freeman, ScottItem Essays on intermediation, the payments system and monetary policy implementation(2005) Ghwee, Justen Rene Kok Lye; Kendrick, David A.; Paal, BeatrixItem Monetary policy operating procedures across the (G-7) industrial world(Texas Tech University, 1999-05) Kalash, Wajih M.Central bankers in all countries of the G-7 industrial world share a number of common concerns in the course of implementing monetary policy. Perhaps the most important of these concerns is the desire for price stability as the main goal to sustain output growth and improve the standard of living. Another concern in the majority of these countries is to preserve progress made in reducing inflation to low rates of the past few years , and in principle to eliminate it. Further in conducting monetary policy the central bankers of the industrial world are concerned about the operating procedures transmission mechanism to make sure that monetary instruments suit their goals. Meanwhile, central bankers have also concerns about the best economic indicators that need to be guaged relevant to their goals of price stability and inflation control. The items of concern can be detailed as follows.Item Statistical problem with measuring monetary policy with application to the current crisis(2010-05) Pappoe, Naakorkoi; Auerbach, Robert D.; Stolp, ChandlerThis report reviews the 2007 financial crisis and the actions of the Federal Reserve. The Full Employment Act of 1946 and the "Humphrey-Hawkins" Act guides the Fed's actions. These two laws outline the long-term goals of the monetary policy framework the Fed uses; however, the framework lacks principles for achieving the mandated long term goals such as reliable, complete data. This report looks at the use of model-based forecasting and gives recommendations for principles which will strengthen the preexisting monetary framework.Item Understanding and profiting from the recession of 2007-2009(2009-12) Frisch, Andrew Harman; Duvic, Robert Conrad, 1947-; Ambler, Tony“The charm of history and its enigmatic lesson consist in the fact that, from age to age, nothing changes and yet everything is completely different.” – Aldous Huxley Aldous Huxley perfectly captures the elusive nature of how difficult it is to analyze history to gain insight to the present and future. Especially because the recent exponential growth in information and technology seem to be changing how the world operates. In actuality though, the same patterns continue to reappear. This paper strives to look back and first understand on a macroeconomic level what causes the business cycle of expansion and recession. Particularly, what historically triggers recessions and what are the consequences of those recessions? Using this historical knowledge, this paper will leave the reader with a better understanding of how a company can grow and thrive in the current difficult economic climate. Even though the expansion/recession cycle is still prevalent today, the affects of these swings during the 1980’s and 1990’s were dramatically reduced in what historians call “The Great Moderation”. The potential reasons for this moderation will be examined and their validity evaluated. This historical perspective combined with an understanding of more recent events allows for this paper to create recommendations for companies to help navigate the stormy economic waters ahead as we try to recover from the current recession. These recommendations hinge on policy advisors and politicians heeding the advice of the past. Lastly, I will explore potential alternate outcomes given poor fiscal and legislative policy by the ruling elite.