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RBA Glossary definition for basis point
basis point – A basis point is 1/100th of 1 per cent or 0.01 per cent, so 100 basis points (bps) is equal to 1 percentage point. The term is used in money and securities markets to define differences in interest or yield. If an interest rate were to increase from 2 per cent to 3 per cent, it is said to have risen by 100 basis points (bps) or one percentage point.
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The Effects of a 100 Basis Point Federal Funds Rate Shock
11 Oct 2022
RDP
2022-04
to a 100 basis point shock are guaranteed to be bounded with very high posterior probability. ... Table 1: Posterior Lower and Upper Probabilities that Decline in Output Exceeds Threshold Following 100 Basis Point Shock.
https://www.rba.gov.au/publications/rdp/2022/2022-04/the-effects-of-a-100-basis-point-federal-funds-rate-shock.html
The Unit-effect Normalisation in Set-identified Structural Vector Autoregressions
11 Oct 2022
RDP
2022-04
I illustrate the empirical relevance of these issues by estimating the response of US output to a 100 basis point federal funds rate shock under different sets of identifying restrictions. ... Some restrictions are very uninformative about the effects of
https://www.rba.gov.au/publications/rdp/2022/2022-04.html
The Unit-effect Normalisation in Set-identified Structural Vector Autoregressions
11 Oct 2022
RDP
2022-04
This indicates that identified sets for the impulse responses to a 100 basis point shock may always be unbounded. ... These restrictions are therefore extremely uninformative about the effects of a 100 basis point shock.
https://www.rba.gov.au/publications/rdp/2022/2022-04/full.html
Conclusion
11 Oct 2022
RDP
2022-04
output effects of a 100 basis point monetary policy shock and posterior inferences remain sensitive to the choice of prior. ... The latter two sets of restrictions effectively rule out large declines in output following a 100 basis point shock.
https://www.rba.gov.au/publications/rdp/2022/2022-04/conclusion.html
Appendix D: Additional Empirical Results
11 Oct 2022
RDP
2022-04
Figure D1: Output Responses to 100 Basis Point Shock – Alternative Horizons.
https://www.rba.gov.au/publications/rdp/2022/2022-04/appendix-d.html
Introduction
11 Oct 2022
RDP
2022-04
This indicates that identified sets for the impulse responses to a 100 basis point shock may always be unbounded. ... These restrictions are therefore extremely uninformative about the effects of a 100 basis point shock.
https://www.rba.gov.au/publications/rdp/2022/2022-04/introduction.html
The Unit-effect Normalisation in Set-identified Structural Vector Autoregressions
11 Oct 2022
RDP
2022-04
Research Discussion Paper – RDP 2022-04 The Unit-effect Normalisation in Set-identified Structural Vector Autoregressions. Matthew Read. October 2022. 2,225. KB. I thank Christiane Baumeister, Benjamin Beckers, Anthony Brassil, Thomas Cusbert,
https://www.rba.gov.au/publications/rdp/2022/2022-04/sections.html
Non-technical summary for ‘The Rise in Household Liquidity’
11 Oct 2022
RDP
2022-04
I illustrate these issues by estimating the response of US output to a monetary policy shock that raises the federal funds rate by 100 basis points on impact. ... Those restrictions are consequently extremely uninformative about the output effects of a
https://www.rba.gov.au/publications/rdp/2022/2022-04/non-technical-summary.html
Framework
11 Oct 2022
RDP
2022-04
τ. -quantiles’ as an interval with end points equal to the. ... While the standard Bayesian approach to inference assumes a uniform prior for Q on the basis that this is ‘uninformative’, Baumeister and Hamilton (2015) show that the implicit prior
https://www.rba.gov.au/publications/rdp/2022/2022-04/framework.html
Checking for Unboundedness in SVARs
11 Oct 2022
RDP
2022-04
1. ,. 0. does not contain zero, it is not possible to construct a sequence for Q converging to the point where. ... The assumption that. 0. f. <. n. 1. rules out point identification of q.
https://www.rba.gov.au/publications/rdp/2022/2022-04/checking-for-unboundedness-in-svars.html