Oddziaływanie polityki monetarnej na stopy procentowe i inflacje

• Authors: Paweł Kawa

Title variants

EN

THE IMPACT OF MONETARY POLICY ON INTEREST RATES AND INFLATION

• Languages of publication: PL

Abstracts

EN

The aim of the article is to present the impact of monetary policy on chosen variables characterising the real and nominal side of the economy. The author first describes the idea of the natural rate of interest, which can be defined as the rate of real interest that stabilises inflation. This approach is extremely important for central banks seeking to implement a direct inflation targeting strategy. Using a money market equilibrium model and term structure of interest rates, the author establishes that if the real interest rate effect occurring in the short term is stronger than the effect of increased inflation expectations then the increase in money supply will reduce the level of the short-term nominal interest rate. However, in the long term the nominal interest rate will increase due to inflation expectations.

Keywords

EN

NATURAL RATE OF INTEREST; INFLATION; MONETARY POLICY; STRATEGY OF DIRECT INFLATION TARGETING; MONEY MARKET EQUILIBRIUM; TERM STRUCTURE OF INTEREST RATES; INFLATION EXPECTATIONS

• Publisher: Wydawnictwo Uniwersytetu Ekonomicznego w Krakowie
• Journal: Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie
• Year: 2012
• Issue: 877
• Pages: 25-35

Contributors

author

Paweł Kawa

• Uniwersytet Ekonomiczny w Krakowie, Katedra Makroekonomii, ul. Rakowicka 27, 31-510 Kraków, Poland