THE DIVERGENCE BETWEEN ACTUAL CENTRAL BANKING AND CONVENTIONAL ECONOMICS

Andrzej Sławiński Actual money creation and the conduct of monetary policy are in some respects at variance with what is assumed in mainstream economics. Nonetheless, in turbulent times central banks have tended to take decisions that followed the widely accepted best practice. The resulting consequences were very unfortunate on at least two occasions. In the […]

ASSESSMENT OF THE CHANNELS OF TRANSMISSION OF OIL PRICE FLUCTUATIONS TO THE ECONOMY

Farhad Taghizadeh-Hesary, Naoyuki Yoshino This paper develops a New Keynesian model to examine a theoretical global economy with two basic macroeconomic components: an energy1 producer and an energy consumer. This simple economy uses these two components to evaluate how oil prices affect the consumer economy’s gross domestic product and inflation. This model assumes that changes […]