Sacrifice ratios and the conduct of monetary policy in conditions of low inflation
AbstractThe focus of monetary policy has shifted markedly over the past 15 years away from attempts to fine tune the economy towards the longer-run goal of attaining price stability and creating the necessary conditions for sustainable economic growth. In an attempt to minimise the costs of such a transition, central banks have become more independent and monetary policy more transparent, changes intended to increase the credibility of monetary policy and to reduce short-run sacrifice ratios. However, concerns have been expressed that an environment of price stability and independent central banks may instead lead to higher sacrifice ratios and, perhaps, even higher rates of structural unemployment, because of the increased importance of nominal and real rigidities at low rates of inflation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Bank for International Settlements in its series BIS Working Papers with number 82.
Length: 58 pages
Date of creation: Nov 1999
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Burdekin, R.C.K. & Siklos, P.L., 1997.
"Exchange Rate Regimes and Shfts in Inflation Persistence: Does Nothing Else Matter?,"
97-2, Wilfrid Laurier University, Department of Economics.
- Burdekin, Richard C K & Siklos, Pierre L, 1999. "Exchange Rate Regimes and Shifts in Inflation Persistence: Does Nothing Else Matter?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 31(2), pages 235-47, May.
- Kiley, Michael T, 2000.
"Endogenous Price Stickiness and Business Cycle Persistence,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 32(1), pages 28-53, February.
- Michael T. Kiley, 1996. "Endogenous price stickiness and business cycle persistence," Finance and Economics Discussion Series 96-23, Board of Governors of the Federal Reserve System (U.S.).
- Anthony Yates & Bryan Chapple, 1996. "What Determines the Short-run Output-Inflation Trade-off?," Bank of England working papers 53, Bank of England.
- Hess, Gregory D. & Shin, Kwanho, 1999.
"Some Intranational Evidence On Output-Inflation Trade-Offs,"
Cambridge University Press, vol. 3(02), pages 187-203, June.
- Gregory D. Hess & Kwanho Shin, 1995. "Some intranational evidence on output-inflation tradeoffs," Research Working Paper 95-11, Federal Reserve Bank of Kansas City.
- Grubb, David B. & Jackman, Richard & Layard, Richard, 1983. "Wage rigidity and unemployment in OECD countries," European Economic Review, Elsevier, vol. 21(1-2), pages 11-39.
- Manabu Asai, 1999. "Time series evidence on a new Keynesian theory of the output-inflation trade-off," Applied Economics Letters, Taylor and Francis Journals, vol. 6(9), pages 539-541.
- Juncal Cunnado & Fernando PErez De Gracia, 2003. "Sacrifice Ratios: Some lessons from EMU countries, 1960-2001," International Review of Applied Economics, Taylor and Francis Journals, vol. 17(3), pages 327-337.
- Patrick Fève & Julien Matheron & Jean-Guillaume Sahuc, 2010.
"Inflation Target Shocks and Monetary Policy Inertia in the Euro Area,"
Royal Economic Society, vol. 120(547), pages 1100-1124, 09.
- Fève, Patrick & Matheron, Julien & Sahuc, Jean-Guillaume, 2009. "Inflation Target Shocks and Monetary Policy Inertia in the Euro Area," TSE Working Papers 09-060, Toulouse School of Economics (TSE).
- Fève, Patrick & Matheron, Julien & Sahuc, Jean-Guillaume, 2008. "Inflation Target Shocks and Monetary Policy Inertia in the Euro Area," IDEI Working Papers 515, Institut d'Économie Industrielle (IDEI), Toulouse.
- Fève,P. & Matheron,J. & Sahuc, J-G., 2009. "Inflation Target Shocks and Monetary Policy Inertia in the Euro Area," Working papers 243, Banque de France.
- Agustin Carstens & Luis I. Jacome H., 2005.
"Latin American Central Bank Reform: Progress and Challenges,"
- International Monetary Fund, 2005. "Latin American Central Bank Reform: Progress and Challenges," IMF Working Papers 05/114, International Monetary Fund.
- Giuseppe Diana & MoÏse Sidiropoulos, 2006. "Central Bank Independence and the Cost of Disinflation: Why the Wage Contracts Length Matters?," International Advances in Economic Research, Springer, vol. 12(3), pages 287-297, August.
- Bowdler, Christopher & Nunziata, Luca, 2010. "Labor market structures and the sacrifice ratio," Journal of Macroeconomics, Elsevier, vol. 32(3), pages 816-826, September.
- Guido Ascari & Tiziano Ropele, 2009.
"Disinflation in a DSGE Perspective: Sacrifice Ratio or Welfare Gain Ratio?,"
Kiel Working Papers
1499, Kiel Institute for the World Economy.
- Ascari, Guido & Ropele, Tiziano, 2012. "Disinflation in a DSGE perspective: Sacrifice ratio or welfare gain ratio?," Journal of Economic Dynamics and Control, Elsevier, vol. 36(2), pages 169-182.
- Guido Ascari & Tiziano Ropele, 2010. "Disinflation in a DSGE Perspective: Sacrifice Ratio or Welfare Gain Ratio?," Quaderni di Dipartimento 111, University of Pavia, Department of Economics and Quantitative Methods.
- Lawrence Huiyan Zhang, 2001. "Sacrifice Ratios with Long-Lived Effects," Economics Working Paper Archive 446, The Johns Hopkins University,Department of Economics.
- Georgios Chortareas & David Stasavage & Gabriel Sterne, 2003. "Does monetary policy transparency reduce disinflation costs?," Manchester School, University of Manchester, vol. 71(5), pages 521-540, 09.
- Fève, Patrick & Matheron, Julien & Sahuc, Jean-Guillaume, 2009.
"Désinflation et chômage dans la zone euro: une analyse à l'aide d'un modèle VAR structurel,"
TSE Working Papers
09-014, Toulouse School of Economics (TSE).
- Patrick FEVE & Julien MATHERON & Guillaume SAHUC, 2010. "Désinflation et chômage dans la zone euro : une analyse à l’aide d’un modèle var structurel," Annales d'Economie et de Statistique, ENSAE, issue 99-100, pages 365-394.
- Fève, P. & Matheron, J. & Sahuc, J-G., 2009. "Désinflation et chômage dans la zone euro : une analyse à l'aide d'un modèle VAR structurel," Working papers 247, Banque de France.
- Marilyne Huchet-Bourdon & Jean-Jacques Durand & Julien Licheron, 2008.
"Sacrifice ratio dispersion within the Euro Zone:What can be learned about implementing a Single Monetary Policy?,"
- Jean-Jacques Durand & Marilyne Huchet-Bourdon & Julien Licheron, 2008. "Sacrifice ratio dispersion within the Euro Zone: what can be learned about implementing a single monetary policy?," International Review of Applied Economics, Taylor and Francis Journals, vol. 22(5), pages 601-621.
- Chorng-Huey Wong & Eric V. Clifton & H. L. Leon, 2001. "Inflation Targeting and the Unemployment-Inflation Trade-off," IMF Working Papers 01/166, International Monetary Fund.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Timo Laurmaa).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.