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productivity trends for the consistency of the Maastricht convergence criteria an for the differences in nation inflation rates …Inflation has fallen dramatically in countries like Spain and Italy over the last decade, but the rate of increase in … that this discrepancy can be explained (at least in part) by trends in productivity; average labour productivity has grown …
Persistent link: https://www.econbiz.de/10005590705
restructuring and defaults; in the United Kingdom inflation has dominated, eroding the value of debt; and in Ireland and Spain the …
Persistent link: https://www.econbiz.de/10010862297
realistic parameter values, the model generates a blip in inflation of the same magnitude observed in the data"--Federal Reserve …
Persistent link: https://www.econbiz.de/10002521760
This paper analyzes the international monetary transmission mechanism in economies with portfolio rigidities. In a general equilibrium monetary model with distribution costs in trade, I analyze the reaction of the economy to technology, money supply and government spending shocks, and the...
Persistent link: https://www.econbiz.de/10005022272
This paper builds upon the empirical literature on the macroeconomic impact of real exchange rate depreciations for a sample of 27 emerging economies. We find that real exchange rate depreciations tend to increase a country's risk premium. This effect is neither linear nor symmetric: large real...
Persistent link: https://www.econbiz.de/10005155273
productivity differentials (internal equilibrium). Empirical implementation of the model suggests that the initial real … appreciation of the peso, between 1990 and 1993, was consistent with the productivity increases that Argentina enjoyed following …
Persistent link: https://www.econbiz.de/10005088320
A simple method to estimate multilateral equilibrium real exchange rates in a cointegration framework is used to compute the equilibrium real exchange rate for the peseta. The stock of foreign assets and the evolution of sectoral prices have been considered to be the fundamentals for the real...
Persistent link: https://www.econbiz.de/10005590662
methodology of Alberola et al (1999-2002), we show that the stock of net foreign assets and the evolution of productivity are the …
Persistent link: https://www.econbiz.de/10004965256
We study simple fiscal rules for stabilizing the government debt level in response to asymmetric demand shocks in a country that belongs to a currency union. We compare debt stabilization through tax rate adjustments with debt stabilization through expenditure changes. While rapid and flexible...
Persistent link: https://www.econbiz.de/10010862268
This paper studies the effects of delegating control of sovereign debt issuance to an independent authority in a monetary union where public spending decisions are decentralized. The model assumes that no policy makers are capable of commitment to a rule. However, consistent with Rogoff (1985)...
Persistent link: https://www.econbiz.de/10010862269