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Does Responsive Pricing Smooth Demand Shocks?

Courty, Pascal; Pagliero, Mario - C.E.P.R. Discussion Papers - 2008

Using data from a unique pricing experiment, we investigate Vickrey’s conjecture that responsive pricing can be used to smooth both predictable and unpredictable demand shocks. Our evidence shows that increasing the responsiveness of price to demand conditions reduces the magnitude of...

Persistent link: https://www.econbiz.de/10005661936

Distributional Impact of Commodity Price Shocks: Australia over a Century

Bhattacharyya, Sambit; Williamson, Jeffrey G - C.E.P.R. Discussion Papers - 2013

. Using a GARCH model, we find that Australia experienced more volatility than many commodity exporting poor countries between …

Persistent link: https://www.econbiz.de/10011084231

Happiness and the Human Development Index: Australia is NOT a Paradox

Leigh, Andrew; Wolfers, Justin - C.E.P.R. Discussion Papers - 2006

In 'Happiness and the Human Development Index: The Paradox of Australia,' Blanchflower and Oswald (2005) observe an … apparent puzzle: they claim that Australia ranks highly in the Human Development Index (HDI), but relatively poorly in … happiness. However, when we compare their happiness data with the HDI, Australia appears happier, not sadder, than its HDI score …

Persistent link: https://www.econbiz.de/10005136466

Monetary Policy In The Open Economy Revisited: Price Setting Rules And Exchange Rate Flexibility

Devereux, Michael B; Engel, Charles M - C.E.P.R. Discussion Papers - 2000

This paper develops a welfare-based model of monetary policy in an open economy. We focus on the extent to which monetary policy should be employed in maintaining the exchange rate. The traditional approach maintains that exchange rate flexibility is desirable in the presence of real...

Persistent link: https://www.econbiz.de/10005504222

Monetary Policy Interactions under Managed Exchange Rates

Giavazzi, Francesco; Giovannini, Alberto - C.E.P.R. Discussion Papers - 1986

This paper studies monetary policy games in a two-period Mundell-Fleming model, under a regime of managed exchange rates. A regime of managed exchange rates is defined as one where exchange rates are pegged but bilateral parities can be changed from time to time. The paper argues that such a...

Persistent link: https://www.econbiz.de/10005504262

Monetary and Fiscal Policy in an Optimizing Model with Capital Accumulation and Finite Lives

Marini, Giancarlo; van der Ploeg, Frederick - C.E.P.R. Discussion Papers - 1987

This paper considers the effects of monetary and fiscal policies in an optimizing model with capital accumulation and finite lives. An increase in monetary growth is no longer superneutral in a money-capital economy, but leads to a reduction in the real interest rate and increases in the capital...

Persistent link: https://www.econbiz.de/10005504290

Back to Keynes?

van der Ploeg, Frederick - C.E.P.R. Discussion Papers - 2005

After a brief review of classical, Keynesian, New Classical and New Keynesian theories of macroeconomic policy, we assess whether New Keynesian Economics captures the quintessential features stressed by JM Keynes. Particular attention is paid to Keynesian features omitted in New Keynesian...

Persistent link: https://www.econbiz.de/10005504355

Financial Crises, Monetary Policy and Financial Fragility; A Second-Generation Model of Currency Crises

Eijffinger, Sylvester C W; Goderis, Benedikt - C.E.P.R. Discussion Papers - 2002

In this Paper we present a model that combines the second-generation trade-off between costs of maintenance and abandonment with possible balance-sheet problems in the corporate sector. We show how debt levels can move a small economy from a fixed exchange rate to a floating exchange rate...

Persistent link: https://www.econbiz.de/10005504385

Costs and Benefits of Monetary Union

Eichengreen, Barry - C.E.P.R. Discussion Papers - 1990

This paper analyses the costs and benefits of European monetary unification. The benefits take the form of the reduction in exchange risk, equalization of interest rates, decline in relative price variability and general increase in economic efficiency likely to accompany unification. The costs...

Persistent link: https://www.econbiz.de/10005504417

Monetary Interdependence under Alternative Exchange-Rate Regimes: A European Perspective

van der Ploeg, Frederick - C.E.P.R. Discussion Papers - 1989

This paper analyses and compares the effects of common demand and supply shocks on the setting of optimal monetary policies under a clean float, a managed exchange rate system (such as the EMS) and a monetary union, when welfare depends on unemployment and the cost of living. The results suggest...

Persistent link: https://www.econbiz.de/10005504499