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Contingent reserves management : an applied framework

Caballero, Ricardo J. (contributor); … - 2005 - This version: September 2004

One of the most serious problems that a central bank in an emerging market economy can face is the sudden reversal of capital inflows. Hoarding international reserves can be used to smooth the impact of such reversals, but these reserves are seldom sufficient and always expensive to hold. In...

Persistent link: https://www.econbiz.de/10003230146

Monetary policy and asset price overshooting: a rationale for the Wall/Main Street disconnect

Caballero, Ricardo J.; Simsek, Alp - 2022

We analyze optimal monetary policy and its implications for asset prices, when aggregate demand has inertia and responds to asset prices with a lag. If there is a negative output gap, the central bank optimally overshoots aggregate asset prices (asset prices are initially pushed above their...

Persistent link: https://www.econbiz.de/10013093040

Using Keynes’s Conventional Coefficient of Weight and Risk, C, From Chapter 26 of His a Treatise on Probability, to Help Explain Keynes’s Three Equations in Chapter 17 of the Gener...

Brady, Michael Emmett - 2021

The mathematical equations Keynes wrote out in chapter 17, in explaining his generalization of his theory of liquidity … misleading scribbled margin notes in his copy of the General Theory in chapter 17 are basically using pA. Liquidity preference … has absolutely NOTHING to do with probability.The result has been that chapter 17 of the General Theory, which is quite …

Persistent link: https://www.econbiz.de/10013238898