Economic structure is often taken as exogenous, but can also influence the policies governing money growth and inflation, as economic structure affects the bases of alternative taxes to seigniorage, the natural rate of unemployment, and the inflation-unemployment trade-off. Inflation theory suggests ...
Assuming that the nominal interest rate and the rate of inflation follow Itô processes we derive an Itô equation that allows us to express and compute the expected real interest rate and its volatility. These two equations generalize the traditional Fisher equation and an illustration using US...
Dynamic estimation of an interest rate structure in Colombia: empirical analysis using the Kalman filter. Dynamic Estimation of an Interest Rate Structure in Colombia: Empirical Analysis Using the Kalman Filter. Journal of Economics, Finance & Administrative ... M Castano,Rogelio,Z Rueda,... - 《...
The equation is used to generate out-of-sample inflation forecast, of a narrower-than the-CPI price index. We can conclude from the estimation results: i) exchange-rate pass-through depends positively on economic activity (output gap) explaining why pass-through has been so low in recent ...
An inflation rate is just the percentage change in a price index. An inflation rate can be computed for any price index using the general equation for percentage changes between two years, whether in the context of inflation or in any other calculation: ...
Break-Even Real Rate of Return = (1 + 5.0%) ÷ (1 + 2.0%) – 1 ≈ 2.94% The logic here is that if the inflation rate comes in at the expected rate of 2%, the investor would earn a real return of 2.94% on their investment. The Fisher Equation is applied using the given nomi...
The nominal interest rate is the market rate of interest that includes compensation for the expected rate of inflation; the real interest rate equals the nominal rate minus the inflation premium. Central banks can manage the real interest rate by changing the supply of loanable funds, by changing...
That is, a foreign inflation rate was added in the test equation and the bond maturities were expanded to include two-year, five-year and twenty-year bonds in addition to ten-year bonds. Further, the changes in the inflation-induced equity market volatility, ∆𝐸𝑀𝑉∆𝑝,𝑡, ...
Inflation is the rate at which the overall level of prices for various goods and services in an economy rises over a period of time. As a result, money loses value because it no longer buys as much as it did in previous times; the purchasing power of a country's currency declines. ...
SS Kyereme - 《Applied Economics》 被引量: 6发表: 1991年 The impact of macroeconomic variables on exchange rate volatility in Ghana: The Partial Least Squares Structural Equation Modelling approach This paper employs the Partial Least Squares Structural Equation Modelling approach to analyse the impact...