The neutrality of nominal rates: how long is the long run?

João Valle e Azevedo; João Ritto; Pedro Teles

doi:10.1111/iere.12584

The neutrality of nominal rates: how long is the long run?

João Valle e Azevedo^*, João Ritto, Pedro Teles

^*Autor correspondente para este trabalho

Resultado de pesquisa › revisão de pares

3 Citações (Scopus)

Resumo

We revisit the empirical relationship between policy interest rates and inflation aimed at understanding the reasons for persistently low inflation in Japan and the euro area and why monetary policy has been unable to raise it. We document the long-run positive relationship between nominal rates and inflation across countries and across time. We also find that a permanent rise in nominal rates leads to an increase in inflation, also in the short run. These findings suggest that the low inflation outcomes are a result of policy rates being kept too low for too long.

Idioma original	English
Páginas (de-até)	1745-1777
Número de páginas	33
Revista	International Economic Review
Volume	63
Número de emissão	4
DOIs	https://doi.org/10.1111/iere.12584
Estado da publicação	Publicado - nov. 2022

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Este resultado contribui para o(s) seguinte(s) Objetivo(s) de Desenvolvimento Sustentável

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10.1111/iere.12584

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CUBE: Católica Lisbon Research Unit in Business and Economics
Machado, F. (PI), Aranda, A. M. (Investigador), Costa, A. I. D. A. (Investigador), Martins, A. P. (Investigador), Bernard, A. (Investigador), Fidalgo, A. (Investigador), Reis, C. (Investigador), Abecassis-Moedas, C. (Investigador), Santos, C. (Investigador), Tran, D. (Investigador), Fernandes, D. (Investigador), Bonfim, D. (Investigador), Schliephake, E. (Investigador), Kalogirou, F. (Investigador), Reis, F. (Investigador), Santos, F. (Investigador), Machado, F. (Investigador), Sguera, F. (Investigador), Cerqueiro, G. (Investigador), Reis, H. (Investigador), Barreto, I. (Investigador), Silva, J. (Investigador), Salvado, J. C. (Investigador), Neves, J. C. D. (Investigador), Gijsbrechts, J. (Investigador), Stahl, J. (Investigador), Guedes, J. C. (Investigador), Faias, J. (Investigador), Wagner, L. (Investigador), Correia, I. (Investigador), Saldanha, M. F. (Investigador), Fontes, J. C. (Investigador), Modesto, L. (Investigador), Meira, M. (Investigador), Matos, M. G. D. (Investigador), Gouveia, M. (Investigador), Kozeniauskas, N. (Investigador), Bertani, N. (Investigador), Couzoff, P. (Investigador), Barroso, P. (Investigador), Encarnação, P. (Investigador), Raposo, P. (Investigador), Teles, P. (Investigador), Bastos, W. (Investigador), Bohnsack, R. (Investigador), Vale, R. C. D. (Investigador), Ferreira, R. (Investigador), Lloyd-Braga, T. (Investigador), Ramus, T. (Investigador), Colaço, V. H. (Investigador), Cavicchini, A. (Investigador), Parada, P. (Investigador), Pieters, R. (Investigador), Pinto, F. A. G. D. L. S. (Investigador), Colaço, V. H. (Investigador) & Venter, Z. (Investigador)
1/01/20 → 31/12/25
Projeto

Citação

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The neutrality of nominal rates: how long is the long run?

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CUBE: Católica Lisbon Research Unit in Business and Economics

Citação