Measuring the natural rate of interest in Poland in the context of the Taylor rule
Journal Title: Acta Universitatis Nicolai Copernici, Ekonomia - Year 2012, Vol 43, Issue 2
Abstract
The natural real interest rate (NRI) is one of the components of the interest rate rule presented by J.B. Taylor (Taylor rule). Original proposal of this rule is to provide recommendations for the monetary authorities for achieving good economic performance. Essential task of the central bank pursuing the strategy of direct inflation targeting is to stabilize inflation at low level. Its realization needs fine tuning of real interest rate to natural level rate of interest. Unfortunately, the NRI is not observable, so it must be estimated. In the paper we present results of estimation NRI in Poland in 1998-2011. We apply the graphical method to determine the level of NRI and Kalman filter to estimate time-varying natural rates of interest. The inclusion of estimates of the NRI in the Taylor rule allows to compare recommendations from different methods.
Authors and Affiliations
Anna Michalek
Keywords
Related Articles
- EP ID EP140953
- DOI -
- Views 100
- Downloads 0
Remuneration of Giants of the Polish Economy after Accession to the UE
The article contains results of analysis of changes which took place in the sphere of pays, in this their connecting with the level the profitability of the largest enterprises in Poland after the accession to the UE. Tr...
Prawne determinanty samodzielności finansowej jednostek samorządu terytorialnego
Przedmiotem zainteresowania niniejszego opracowania jest ważna i aktualna problematyka samodzielności finansowej jednostek samorządu terytorialnego. Artykuł został sporządzony przy wykorzystaniu metody formalno-dogmatycz...
Linearity kernel test
The aim of this paper is to presents the results of simulation studies of size and power of the kernel linearity test, which belongs to a class of nonparametric tests. Simulation survey was carried out for linear and non...
Innovation policy in Poland
The innovation has gained tremendous importance amongst scientists, politicians, and entrepreneurs since it was identified as the key factor of the economic growth and competitiveness. In order for innovation processes t...
Selected problems of targeting active labour market policies in Poland
Well targeted active labour market policies create better prospects for achieving higher net employment effects. This article attempts to analyse targeting of active labour market policies in the context of regulations...