benign international environment, this approach makes it unlikely that the economy will face a collapse in growth. But there … benign international environment, this approach makes it unlikely that the economy will face a collapse in growth. But there …

financial frictions. The political economy surrounding distributional consequences can sometimes lead to policy measures that …

, however, is that there seem to be certain "threshold" levels of financial and institutional development that an economy needs …

the flexible price equilibrium. In this paper, we develop a twosector two-good closed economy new Keynesian model to study …

In closed or open economy models with complete markets, targeting core inflation enables monetary policy to maximize … is high. We develop an open economy model with incomplete financial markets to show that headline inflation targeting …

aggregate welfare when the economy is hit by positive shocks to nontradable goods productivity or foreign interest rates. Fiscal …