Monetary policy: rules rule -OK?
Article Abstract:
The McCallum rule for monetary policy advocates setting growth of narrow money or M0 in line with a pre-set target for economic growth. Critics argues that if central banks seek to control M0 rather than interest rates, there could be excessively volatile interest rates. The rule implies that M0 is a good way to forecast inflation, but it is not the only indicator of future inflation, and other measures using a variety of indicators may be more accurate.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Global economy: getting better
Article Abstract:
The world economy should continue to expand, with the US emerging from a temporary slowdown, according to JP Morgan. Emerging economies have good prospects and their markets have stabilised by Aug 1995. The Japanese goverment is likely to provide fiscal and monetary support for the Japanese financial system. Monetary policy is likely to tighten outside Japan due to inflationary pressures. Action will also have to continue to control budget deficits.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Why investors should ignore the Bank
Article Abstract:
The Bank of England's Sep 6, 2001, decision on interest rates is not crucial for investors in gilts. Research by two Bank economists found that interest rate changes do not often cause a large reaction in long-dated gilt futures prices.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 2001
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