of monetary policy. We use a stylized macro model of Howitt (1992) to investigate inflation dynamics under alternative … interest rate in response to inflation. In particular, if the monetary authority only responds weakly to inflation, a … cumulative process with rising inflation is likely. On the other hand, a Taylor interest rate rule that sets the interest rate …

inflationary pressures increase NIM. This strongly increases credit and thereby output, but it dampens inflation by relaxing price … setters' credit rationing constraint. At the ZLBD, monetary policy has far larger effects on output relative to inflation, and … suggests urgency in returning inflation to targets, avoidance of negative policy rates, and a strong influence of credit …

rate sequences that satisfy interest rate target rules. An interest rate target with a positive inflation feedback in … general corresponds to money growth rates rising with inflation. When prices are not completely flexible, this implies that a … target can be implemented by a non-destabilizing money supply, even if the inflation feedback exceeds one, which is often …

regime, systematic monetary policy follows a Taylor rule extended by the term spread and is effective in curbing inflation … of the second regime, inflation would be over one percentage point higher on average after 2008. …

subject to stochastic volatility. It enables the disentanglement of dynamic structures in both the mean and the variance of … the observed time series. We develop a simulated maximum likelihood estimation method based on importance sampling and … applied to quarterly and monthly US inflation in an empirical study. We find that the persistence of quarterly inflation has …

geometric ergodicity of the model. Simulation results justify the use of limit theory in empirically relevant settings. The …

Estimation of the volatility of time series has taken off since the introduction of the GARCH and stochastic volatility … unobserved stochastic volatility, and the varying approaches that have been taken for such estimation.In order to simplify the … comprehension of these estimation methods, the main methods for estimating stochastic volatility are discussed, with focus on their …