The effect of central bank transparency on inflation persistence

Oikonomou, Georgios; Papadamou, Stephanos; Spyromitros, Eleftherios

doi:10.17811/ebl.10.1.2021.58-68

Cited by 7 publications

(2 citation statements)

References 34 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…According to the current literature review presented by Oikonomou et al (2021) there are two sets of articles (studies) that have reached consensus on the causes of inflation inertia. The first group of studies claims that inflation inertia results from price and wage stickiness, which is a structural feature of the economy (Blanchard and Galí 2007;Jaumotte and Morsy 2012).…”

Section: Discussionmentioning

confidence: 99%

Asymmetric Dynamics of Inflation Inertia in Non-Eurozone European Countries

Özcan

2022

Preprint

View full text Add to dashboard Cite

In the last twenty years, the European economy, which has faced two serious crises, nowadays tries to cope with the negative effects of the pandemic that has affected the whole world. Among all these negative effects, the one experienced by the society most is, without a doubt, high and permanent inflation. In this study, inflation inertia was analyzed with linear and non-linear unit root tests for the seven economies which are in non-Eurozone but are members of the European Union. The non-linear unit root tests used take both structural change and regime switching into account. Thanks to these tests, all none-linear dynamics that can be observed in the inflation series were included in the inflation inertia analysis. Moreover, the respective tests were aimed to obtain empirical data more sensitive to the shocks applied in time by Rolling Windows Sample approach. According to the obtained results, while inflation inertia was detected in Bulgaria, Croatia and Czechia, it was found out that Romania and Sweden economies are the ones with the least inflation inertia.

show abstract

Section: Discussionmentioning

confidence: 99%

Asymmetric Dynamics of Inflation Inertia in Non-Eurozone European Countries

Özcan

2022

Preprint

View full text Add to dashboard Cite

show abstract

“…The two main characteristics of central banks are independence and transparency. They are directly related to the process and policy basis upon which the central bank makes decisions [28][29][30][31][32][33]. The present study analyses these two characteristics in the context of a mainly monetary model to determine the channels and processes through which they operate and how they relate to green innovation [34,35].…”

Section: Introductionmentioning

confidence: 98%

Determinants of Green Innovation: The Role of Monetary Policy and Central Bank Characteristics

Spyromitros

2023

Sustainability

Self Cite

View full text Add to dashboard Cite

The current global energy crisis has prompted a comprehensive investigation into its influencing factors. It is hypothesised that a set of monetary, macro-environmental, and institutional variables causally affect the transition to green development in a holistic model. Monetary expansion and central bank characteristics are required for economic and environmental development. The current study investigates and rigorously verifies the impact of expansionary monetary policy actions on green innovation, using a panel of 109 countries from 2010 to 2018. Overall, specific actions have a substantial positive effect on the performance of green innovation. A rise in per capita GDP, government spending, and improvement in bureaucracy all promote green economic activity. Green innovation is significantly affected by developing nations’ central bank independence and lower interest rates. Expansionary monetary policy, central bank transparency, and energy variables promote green growth in developed countries and green innovation in Latin American countries and in East Asian and Pacific countries. Finally, green innovation is more affected by expansionary monetary policy in countries with high institutional quality, industrial concentration, and energy intensity, and inflation and trade openness serve as deterrents in the monetary expansion–green development nexus.

show abstract