Central bank credibility, long-term yields and the effects of monetary integration
dc.contributor.author | Kolasa, Marcin | |
dc.contributor.author | Supera, Dominik | |
dc.date.accessioned | 2023-07-27T05:07:39Z | |
dc.date.available | 2023-07-27T05:07:39Z | |
dc.date.issued | 2021-01 | |
dc.identifier.citation | Kolasa M., Supera D., Central bank credibility, long-term yields and the effects of monetary integration, KAE Working Papers, 2021, nr 2021-061, s. 1-27 | en |
dc.identifier.uri | http://hdl.handle.net/20.500.12182/1115 | |
dc.description.abstract | Forming a monetary union implies equalization of short-term interest rates across the member states as monetary policy is delegated to a common central bank, but also leads to integration of risk-free bond markets. In this paper we develop a quantitative open economy model where long-term bond yields matter for real allocations. We next use the model to shed light on the macroeconomic effects of convergence in bond prices within a currency union. Our focus is on a small open economy, where the pre-accession level of interest rates is high due to floating exchange rate and relatively low central bank focus on stabilizing inflation. We find that, from the perspective of social welfare in the country adopting a common currency, the benefits associated with lower long-term yields can outweigh the costs related to a loss of monetary independence. | en |
dc.language.iso | en | |
dc.rights | Dozwolony użytek | * |
dc.subject | monetary integration | en |
dc.subject | bond yields | en |
dc.subject | central bank credibility | en |
dc.subject.classification | E30 | en |
dc.subject.classification | E43 | en |
dc.subject.classification | E44 | en |
dc.subject.classification | E52 | en |
dc.subject.classification | F45 | en |
dc.title | Central bank credibility, long-term yields and the effects of monetary integration | en |
dc.type | workingPaper | en |
dc.description.number | 2021-061 | en |
dc.description.physical | 1-27 | en |
dc.description.series | SGH KAE Working Papers Series | en |
Pliki tej pozycji
Pozycja umieszczona jest w następujących kolekcjach
-
KAE Working Papers [111]
KAE Working Papers

Korzystanie z tego materiału jest możliwe zgodnie z właściwymi przepisami o dozwolonym użytku lub o innych wyjątkach przewidzianych w przepisach prawa, a korzystanie w szerszym zakresie wymaga uzyskania zgody uprawnionego.