Showing 1 - 10 of 98
Based on a dynamic open-economy macroeconomic model, this paper aims at understanding the contribution of domestic financial underdevelopment to foreign reserve accumulation in some emerging market economies, especially in China. It is argued that foreign reserve accumulation is part and parcel...
Persistent link: https://www.econbiz.de/10010815992
the Great Recession. First, it documents that starting in 1996, before the actual introduction of the euro, countries in …
Persistent link: https://www.econbiz.de/10010815969
We estimate a medium-scale DSGE model for the euro area in an open economy framework. The model includes structural trends on all variables, which allow us to estimate on gross data. We first provide a theoretical balanced growth path consistent with permanent productivity shocks, inflation...
Persistent link: https://www.econbiz.de/10009145707
magnitude for the Great Recession, while its rational expectations counterpart predicts a counter-factual expansion. In addition …
Persistent link: https://www.econbiz.de/10010815952
Episodes of large capital inflows in small open economies are often associated with a shift of resources from the tradable to the non-tradable sector and sometimes lead to balance-of-payments crises. This paper builds a two-sector dynamic model to study the evolution of the sectoral structure...
Persistent link: https://www.econbiz.de/10010891764
The decline in the sensitivity of inflation to domestic slack observed in developed countries over the last 25 years has been often attributed to globalization. However, this intuition has so far not been formalized. I develop a general equilibrium setup that can rationalize the flattening of...
Persistent link: https://www.econbiz.de/10011196011
Motivated by the Chinese experience, we analyze a semi-open economy where the central bank has access to international capital markets, but the private sector has not. This enables the central bank to choose an interest rate different from the international rate. We examine the optimal policy of...
Persistent link: https://www.econbiz.de/10010815959
A stable net external position requires that the trade balance responds negatively to changes in the net external position. If financial integration makes financing external imbalances less costly, we expect slower external adjustment in more integrated economies. The study estimates...
Persistent link: https://www.econbiz.de/10010815960
In this paper, we consider an alternative perspective to China's exchange rate policy. We study a semi-open economy where the private sector has no access to international capital markets but the central bank has full access. Moreover, we assume limited financial development generating a large...
Persistent link: https://www.econbiz.de/10010815978
This paper investigates the implications of cross-country heterogeneity within the euro area for the design of optimal monetary policy. We build an optimizing-based multi-country model (MCM) describing the euro area in which differences between structural parameters across countries are allowed....
Persistent link: https://www.econbiz.de/10004998845