determination of inflation in an open economy phillips curve
... Asian countries. We also analyze whether the estimated relationship should be forward looking with the expected inflation rate included as an independent variable, or backward looking. Several studies have been conducted for the developed economies (e.g. Fuhrer and Moore, 1995; Gali and Gertler, 199 ...
... Asian countries. We also analyze whether the estimated relationship should be forward looking with the expected inflation rate included as an independent variable, or backward looking. Several studies have been conducted for the developed economies (e.g. Fuhrer and Moore, 1995; Gali and Gertler, 199 ...
NBER WORKING PAPER SERIES TIME OF TROUBLES: Maurice Obstfeld
... will be discussed in greater detail below. Okina and Shiratsuka (2002, p. 44), suggest that the monetary stance over 1986-88 might have fueled a “euphoric” expectation of “protracted low interest rates.” Any such expectation was dashed in mid-1989, when the Bank of Japan finally did embark upon a c ...
... will be discussed in greater detail below. Okina and Shiratsuka (2002, p. 44), suggest that the monetary stance over 1986-88 might have fueled a “euphoric” expectation of “protracted low interest rates.” Any such expectation was dashed in mid-1989, when the Bank of Japan finally did embark upon a c ...
Chapters 31
... Panel (a) shows national saving and domestic investment as a percentage of GDP. You can see from the figure that national saving has been lower since 1980 than it was before 1980. This fall in national saving has been reflected primarily in reduced net capital outflow rather than in reduced domestic ...
... Panel (a) shows national saving and domestic investment as a percentage of GDP. You can see from the figure that national saving has been lower since 1980 than it was before 1980. This fall in national saving has been reflected primarily in reduced net capital outflow rather than in reduced domestic ...
The Monetary Policy of the European Central Bank (2002
... The Treaty of Maastricht instituted the euro as the currency of the Economic and Monetary Union (Article 3.4 Treaty on European Union), the single monetary policy for participating countries (the eurozone) and the eurozone monetary authority – comprising the National Central Banks (NCBs) of the Euro ...
... The Treaty of Maastricht instituted the euro as the currency of the Economic and Monetary Union (Article 3.4 Treaty on European Union), the single monetary policy for participating countries (the eurozone) and the eurozone monetary authority – comprising the National Central Banks (NCBs) of the Euro ...
The Excess Demand Theory of Money
... period with a lending term of one period. There is no money at the very beginning. There is a demand for credits Cr D by the public that depends negatively on the interest rate i. This is because more investment projects are profitable at a lower interest rate and more credits will be taken to finan ...
... period with a lending term of one period. There is no money at the very beginning. There is a demand for credits Cr D by the public that depends negatively on the interest rate i. This is because more investment projects are profitable at a lower interest rate and more credits will be taken to finan ...
Time of Troubles: The Yen and Japan`s Economy, 1985
... will be discussed in greater detail below. Okina and Shiratsuka (2002, p. 44), suggest that the monetary stance over 1986-88 might have fueled a “euphoric” expectation of “protracted low interest rates.” Any such expectation was dashed in mid-1989, when the Bank of Japan finally did embark upon a c ...
... will be discussed in greater detail below. Okina and Shiratsuka (2002, p. 44), suggest that the monetary stance over 1986-88 might have fueled a “euphoric” expectation of “protracted low interest rates.” Any such expectation was dashed in mid-1989, when the Bank of Japan finally did embark upon a c ...
Slide 1
... EMP can integrate both theories: ER & BOP EMP can be more relevant than just ER changes as a determinant of other phenomena EMP better signals forex tensions EMP also helps speculators to find profit ...
... EMP can integrate both theories: ER & BOP EMP can be more relevant than just ER changes as a determinant of other phenomena EMP better signals forex tensions EMP also helps speculators to find profit ...
Time of Troubles: The Yen and Japan`s Economy, 1985
... The BOJ was given goal as well as instrument independence with respect to inflation; its official mandate under the new law was to maintain “price stability” – nowhere defined in the Law – and to share with the government in maintaining financial stability. Among the political factors underlying the ...
... The BOJ was given goal as well as instrument independence with respect to inflation; its official mandate under the new law was to maintain “price stability” – nowhere defined in the Law – and to share with the government in maintaining financial stability. Among the political factors underlying the ...
Nontradable Goods and the Real Exchange Rate
... compare two versions of this model: in the first one, the two sectors (tradable and nontradable) produce final consumption goods. In the second one, we introduce a nontradable intermediate input that is incorporated in the production of the final tradable good. In this case, we aim at understanding ...
... compare two versions of this model: in the first one, the two sectors (tradable and nontradable) produce final consumption goods. In the second one, we introduce a nontradable intermediate input that is incorporated in the production of the final tradable good. In this case, we aim at understanding ...
On The Persistence of Unemployment in The Caribbean: The Cases
... and Summers 1986). This is not the only meaning of hysteresis in unemployment3. To the best of our knowledge, three theories at the very least explain the hysteresis phenomenon: duration theory which essentially states that the longer the unemployment spell, the harder for the unemployed to find job ...
... and Summers 1986). This is not the only meaning of hysteresis in unemployment3. To the best of our knowledge, three theories at the very least explain the hysteresis phenomenon: duration theory which essentially states that the longer the unemployment spell, the harder for the unemployed to find job ...
Inflation targeting, transparency and interest rate volatility: ditching
... This model has precise implications for the conditional or instantaneous distribution of interest rates, which we denote σ i ( f ) . The product of the partial derivative of the interest rate with respect to the fundamentals, and the standard deviation of the fundamentals gives this15, that is: ...
... This model has precise implications for the conditional or instantaneous distribution of interest rates, which we denote σ i ( f ) . The product of the partial derivative of the interest rate with respect to the fundamentals, and the standard deviation of the fundamentals gives this15, that is: ...
Chakriya Bowman Economies
... Abstract: As the strength of the Japanese economy grew during the 1980s, many studies examined the integration between currencies in the region. Several studies found evidence for a “yen bloc”, a significant and strengthening relationship between the Japanese yen and other regional currencies due to ...
... Abstract: As the strength of the Japanese economy grew during the 1980s, many studies examined the integration between currencies in the region. Several studies found evidence for a “yen bloc”, a significant and strengthening relationship between the Japanese yen and other regional currencies due to ...
NBER WORKING PAPER SERIES MODELING DEVIATIONS FROM PURCHASING POWER PARITY (ppp)
... where the degree to which prices are rigid is determined endogenously. It is shown that the variance of percentage deviations from ppp has an upper bound, and that the relationship between the variance of deviations from ppp and the aggregate variability is not inonotonic. Allowing for a short—run P ...
... where the degree to which prices are rigid is determined endogenously. It is shown that the variance of percentage deviations from ppp has an upper bound, and that the relationship between the variance of deviations from ppp and the aggregate variability is not inonotonic. Allowing for a short—run P ...
Real exchange rates and international co-movement: news
... bond is traded. Stockman and Tesar (1995) suggest that accounting for taste-shocks can be important to explain several facts of international cyclical uctuations. Rao (2010) proposes a mechanism via investment-speci c technology shocks to account for the consumption-real exchange rate anomaly, as ...
... bond is traded. Stockman and Tesar (1995) suggest that accounting for taste-shocks can be important to explain several facts of international cyclical uctuations. Rao (2010) proposes a mechanism via investment-speci c technology shocks to account for the consumption-real exchange rate anomaly, as ...
On the Equivalence of Money Growth and Interest Rate Policy
... On the Equivalence of Money Growth and Interest Rate Policy Andreas Schabert1 University of Cologne ...
... On the Equivalence of Money Growth and Interest Rate Policy Andreas Schabert1 University of Cologne ...
NBER WORKING PAPER SERIES CHAOTIC INTEREST RATE RULES: EXPANDED VERSION Jess Benhabib
... studies have further shown that since the early 1980s interest-rate feedback rules in developed countries have been active in the sense that the nominal interest rate responds more than one for one to changes in the inflation measure. For example, Taylor (1993) finds that for the U.S. during the pos ...
... studies have further shown that since the early 1980s interest-rate feedback rules in developed countries have been active in the sense that the nominal interest rate responds more than one for one to changes in the inflation measure. For example, Taylor (1993) finds that for the U.S. during the pos ...
SEP 5I-V-75 : `N
... on the monetary approach to balance of payments under fixed exchange rates. The paper goes beyond the existing literature by analyzing the dynamic interaction between the exchange rate, exchange rate expectations, and the balance of payments under alternative assumptions about the formation of excha ...
... on the monetary approach to balance of payments under fixed exchange rates. The paper goes beyond the existing literature by analyzing the dynamic interaction between the exchange rate, exchange rate expectations, and the balance of payments under alternative assumptions about the formation of excha ...
Modeling Exchange Rate Passthrough After Large Devaluations
... argue that the primary force causing these declines is a slow adjustment in the price of nontradable goods and services, not slow adjustment in the price of goods that are imported or exported. Our evidence suggests that the key puzzle about the post-devaluation behavior of in‡ation is, why do the p ...
... argue that the primary force causing these declines is a slow adjustment in the price of nontradable goods and services, not slow adjustment in the price of goods that are imported or exported. Our evidence suggests that the key puzzle about the post-devaluation behavior of in‡ation is, why do the p ...
on the meaning and future of the european monetary system
... detail to which the new arrangement has also given rise. Moreover, in the present early and still very fluid state of the EMS,the basic issues are of far greater importance. 1. A Brief Retrospect on European Integration a. Early Efforts We often lose sight of the simple fact that all fundamental dif ...
... detail to which the new arrangement has also given rise. Moreover, in the present early and still very fluid state of the EMS,the basic issues are of far greater importance. 1. A Brief Retrospect on European Integration a. Early Efforts We often lose sight of the simple fact that all fundamental dif ...
Capital Inflows and Balance of Payments Pressures
... under which a country might be facing balance of payments pressures; and, in particular, capital inflows. Whether—or to what extent—a country fits into any single case will be a matter of judgment that depends on a country’s own circumstances, including the balance sheet and cyclical position of the ...
... under which a country might be facing balance of payments pressures; and, in particular, capital inflows. Whether—or to what extent—a country fits into any single case will be a matter of judgment that depends on a country’s own circumstances, including the balance sheet and cyclical position of the ...
Submissions on EMU from leading academics
... Controlling economic systems is generally more difficult than controlling physical ones, but insights from control engineering can be useful nonetheless. If one wishes to control a variable, for instance inflation or the budget deficit, one can attempt to do so by writing down a feedback rule which ...
... Controlling economic systems is generally more difficult than controlling physical ones, but insights from control engineering can be useful nonetheless. If one wishes to control a variable, for instance inflation or the budget deficit, one can attempt to do so by writing down a feedback rule which ...
Sadeh, Tal (2007), `Managing a Common Currency: Political and
... Which fiduciary numeraire would best-serve price stability and an efficient allocation of resources? Although a law can force people to hold a governmental paper money, it is more efficient to make money attractive to its holders by according it a ...
... Which fiduciary numeraire would best-serve price stability and an efficient allocation of resources? Although a law can force people to hold a governmental paper money, it is more efficient to make money attractive to its holders by according it a ...