Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Concept Of Neutral Inflation And Its Application To The Eu Economic Growth Analyses

Contents:

Author Info

  • Jan L. Bednarczyk
Registered author(s):

    Abstract

    Interest rate policy is one of the oldest and at the same time most controversial tools with which central bank affects the economy. In fact, it comes down to the central bank initiated changes in the levels of the so-called official interest rates (discount rate, rediscount rate, lombard rate, and others) or influencing the market interest rates through open market operations. A frequent paradox which appears in the historical approach to interest rates is questioning of the causative role of interest rate changes introduced by central banks with reference to dynamics of the so-called real sphere as well as frequent use of this stabilization instrument. In the last few decades, several turnabouts occurred in economic policies (especially, monetary policies) of the industrialized countries. Each time, a new interpretation of interest rate policy was responsible for that. One of the trends which appeared in the discussion was an attempt to return to classical roots of the interest rate theory. The concept of the natural rate of interest became the focus of attention. This paper refers to this concept and is an attempt to present the author’s own interpretation of it. The final part of the paper presents a study case of the natural interest rate policy of the National Bank of Poland (NBP) in the years 1999-2003. It shows that finding an optimum rate of interest in the transforming economy can be even more difficult than it appears from purely theoretical discussions.

    Download Info

    If 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.
    File URL: http://www.ec.unipg.it/DEFS/uploads/qd53web.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Università di Perugia, Dipartimento Economia, Finanza e Statistica in its series Quaderni del Dipartimento di Economia, Finanza e Statistica with number 53/2008.

    as in new window
    Length: 16 pages
    Date of creation: 15 Apr 2008
    Date of revision:
    Handle: RePEc:pia:wpaper:53/2008

    Contact details of provider:
    Postal: via Pascoli, 20 - 06123 Perugia
    Phone: +39 075 5855279
    Fax: +39 075 5855299
    Email:
    Web page: http://www.ec.unipg.it/DEFS/
    More information through EDIRC

    Related research

    Keywords:

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:pia:wpaper:53/2008. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ubaldo Pizzoli).

    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.