What are the economic effects of an interest rate cut when an economy is in the midst of a financial crisis? Under what … ffects? We answer these questions in a general class of open economy models, where a financial crisis is modeled as a time … the traded good sector and in adjusting the rate at which that output can be used in other parts of the economy, then a …

report three major findings: First, since the tightening cycle will take place in the context of a robust U.S. economy, it …

episode took a very heavy toll on the real economy, we argue that this was not a surprising outcome. In particular, historical …

, they now appear less well placed to cope with the substantial downside risks facing the global economy. In many EMDEs, the …