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Signaling Credibility --- Choosing Optimal Debt and International Reserves

Aizenman, Joshua - 2006

This paper evaluates the challenges facing developing countries when there is uncertainty about the policy maker type. We consider a country characterized by volatile output, inelastic demand for fiscal outlays, high tax collection costs, and sovereign risk, where future output depends on the...

Persistent link: https://www.econbiz.de/10012466258

Financial Spillovers and Macroprudential Policies

Aizenman, Joshua - 2017

We investigate whether and to what extent macroprudential policies affect the financial link between the center economies (CEs, i.e., the U.S., Japan, and the Euro area), and the peripheral economies (PHs). We first estimate the correlation of the policy interest rates between the CEs and the...

Persistent link: https://www.econbiz.de/10012453608

Central Bank Swap Arrangements in the COVID-19 Crisis

Aizenman, Joshua; Itō, Hiro; Pasricha, Gurnain Kaur - National Bureau of Economic Research - 2021

Facing acute strains in the offshore dollar funding markets during the COVID-19 crisis, the Federal Reserve (Fed) implemented measures to provide US dollar liquidity by reinforcing swap arrangements with five major central banks, reactivating them with nine other central banks and establishing a...

Persistent link: https://www.econbiz.de/10012496139

Exchange Rate Regimes and Financial-Market Imperfections

Aizenman, Joshua - 2000

This paper investigates the design of an exchange rate policy for an economy where the domestic capital market is segmented from the global financial market, producers rely on credit to finance working capital needs, and the labor market is characterized by nominal contracts. We show that the...

Persistent link: https://www.econbiz.de/10012471012

Targeting Rules for Monetary Policy

Aizenman, Joshua - 1986

This paper develops an analytical framework for the analysis of targeting rules for monetary policy. We derive the optimal money supply rule and analyze the implications of other monetary rules including rules that target nominal GNP, the price level, the monetary growth rate and the...

Persistent link: https://www.econbiz.de/10012477194

Exchange Rate Management : Intertemporal Tradoffs

Helpman, Elhanan - 1985

The management of the exchange rate is possible only if the government pursues a monetary-fiscal policy mix which is consistent with its exchange rate targets. In this paper with uncertainty concerning the length of individual life the real consequences of exchange rate management depend on the...

Persistent link: https://www.econbiz.de/10012477494

Optimal Wage Indexation, Foreign-Exchange Intervention and Monetary Policy

Aizenman, Joshua - 1984

which affect the economy and by the information set that individuals possess. Because of cost of negotiations, nominal wages … available information and, may result in welfare loss. The analysis specifies the optimal set of feedback rules that should … independent sources of information that influence the determination of the undistorted equilibrium. Thus, it is shown that with a …

Persistent link: https://www.econbiz.de/10012477765

Adjustment to Monetary Policy and Devaluation Under Two-Tier and Fixed Exchange Rate Regimes

Aizenman, Joshua - 1983

The purpose of this paper is to determine whether a two-tier exchange rate regime is more effective than a fixed rate regime in increasing acountry's ability to pursue an independent monetary policy in the short run.The analysis compares adjustment to a monetary policy and to a devaluation in...

Persistent link: https://www.econbiz.de/10012477995

Balance-of-Payments Crises and Devaluation

Obstfeld, Maurice - 1983

The collapse of a fixed exchange rate is typically marked by a sudden balance-of-payments crisis in which"speculators" fleeing from the domestic currency acquire a large portion of the central bank's foreign exchange holdings.Faced with such an attack, the central bank often withdraws...

Persistent link: https://www.econbiz.de/10012477999

Aspects of the Optimal Management of Exchange Rates

Frenkel, Jacob A. - 1981

This paper analyzes aspects of the economics of the optimal management of exchange rates. It shows that the choice of the optimal exchange rate regime depends on the nature and the origin of the stochastic shocks that affect the economy. Generally, the higher is the variance of real shocks which...

Persistent link: https://www.econbiz.de/10012478367