We investigate both the rational explosive inflation paths studied by McCallum (2001), and the classification of fiscal … and monetary policies proposed by Leeper (1991), for stability under learning of the rational expectations equilibria (REE …

prices and the rest of the economy. We study the role of commodity prices in a disinflation program, the role of commodity … prices in determining whether or not a fiscal expansion is crowded out, and the effect on the manufacturing sector of the … of primary commodities. One of our main concerns is to draw an analogy between the roles of commodity prices and of …

We investigate theoretically and empirically the competitive effects of increased trade on prices, productivity and … and significant impact on sectoral prices. Increased openness lowers prices by both reducing markups and raising … productivity rises in a manner that increases over time. Our estimates suggest that EU manufacturing prices fell by 2 …

exercised a counter-inflationary leadership role in the 1980s. Evidence is provided that expectations of German inflation may be … thought of as having impacted more strongly on expectations of inflation in other EMS countries in the EMS period than on non …-EMS countries (the UK) and in earlier periods. Co-integration tests show inflation rates in partner EMS member countries to be …

This paper shows that the Ricardian Equivalence proposition can continue to hold when expectations are not rational and … are instead formed using adaptive learning rules. In temporary equilibrium, with given expectations, Ricardian Equivalence … holds under the standard conditions for its validity under rational expectations. Furthermore, Ricardian Equivalence holds …

expectations and macroeconomic variables, although there are signs that lower inflation improves credibility. Statistically, many …Realignment expectations which measure exchange rate credibility are analysed for European exchange rates using daily … movements to realignment expectations are common to ERM participants. There were few indications of poor ERM credibility before …

their relative role in forming exchange rate expectations. We find that there are distinct periods of high and low …

Svensson(1994). We interpret the instantaneous forward rate as the expectations for the overnight rate prevailing at each point … derive a measure of expectations for Central Banks interventions. On this basis we can assess the predictability of monetary …

negatively correlated with expected changes in exchange rates and vary more than expectations about future exchange rate … current exchange rates have little or no informational content about the market's expectations of future exchange rate …