Real exchange rate dynamics in the European monetary union
Flexibility of nominal exchange rates can foster adjustment in real exchange rates, but also can be a source of destabilizing shocks. We apply Bayesian methods to investigate how the loss of the nominal exchange rate within the European monetary union affected the temporal dynamics of real exchange rate adjustment in its member countries.
Project status |
in progress |
Project time |
since 01.04.2021 |
Keywords |
European monetary union; real exchange rates |
The Fed's switch to an explicit inflation target: Communication and policy consequences
We aim to shed light on the important issue of central bank communication in general, and the monetary policy strategy of the Fed in particular. In particular, we apply probabilistic topic models to the Fed's communication with the public to identify the policy priorities expressed in this communication. Specifically, we seek to analyze whether the Fed's adoption of an explicit inflation target in 2012 can be detected in corresponding shifts in the focus of its communication and in adjustments of its monetary policy stance.
Project status |
in progress |
Project time |
since 01.10.2020 |
Keywords |
Communication; Monetary policy; European Central Bank; Probabilistic Topic Models |