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Inflation Targeting and Debt: Lessons from Brazil
Favero, Carlo A.; Giavazzi, Francesco - C.E.P.R. Discussion Papers - 2004
A single variable describes, day-by-day, what investors think about the state of Brazil's economy: the Brazilian … markets' assessment of the probability that Brazil might default on its debt obligations. This is mainly because the cost of … domestic interest rates, is thus the necessary first step in order to understand macroeconomic developments in Brazil. The …
Persistent link: https://www.econbiz.de/10005123784
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The Response of the Informal Sector to Trade Liberalization
Goldberg, Pinelopi Koujianou; Pavcnik, Nina - C.E.P.R. Discussion Papers - 2003
1980’s and 1990’s - Brazil and Colombia - we examine the response of the informal sector to liberalization. In Brazil, we … find no evidence of a relationship between trade policy and informality. In Colombia, we do find evidence of such a …
Persistent link: https://www.econbiz.de/10005661732
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A Tractable Model of Precautionary Reserves, Net Foreign Assets, or Sovereign Wealth Funds
Carroll, Christopher D; Jeanne, Olivier - C.E.P.R. Discussion Papers - 2009
We model the motives for residents of a country to hold foreign assets, including the precautionary motive that has been omitted from much previous literature as intractable. Our model captures many of the principal insights from the existing specialized literature on the precautionary motive,...
Persistent link: https://www.econbiz.de/10008528533
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Currency Substitution and the Fluctuations of Foreign-Exchange Reserves with Credibly Fixed Exchange Rates
Giovannini, Alberto - C.E.P.R. Discussion Papers - 1991
A fixed-exchange-rate system is characterized by two pillars: monetary policy coordination and foreign exchange reserves. This paper concentrates on the fluctuation of foreign exchange reserves by taking monetary policy coordination as given: the sustainability of the fixed exchange rate regime...
Persistent link: https://www.econbiz.de/10005281365
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External Liabilities and Crises
Catão, Luis A. V.; Milesi-Ferretti, Gian Maria - C.E.P.R. Discussion Papers - 2014
We examine the determinants of external crises, focusing on the role of foreign liabilities and their composition. Using a variety of statistical tools and comprehensive data spanning 1970-2011, we find that the ratio of net foreign liabilities to GDP is a significant crisis predictor. This is...
Persistent link: https://www.econbiz.de/10011083620
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The Dollar and its Discontents
Jeanne, Olivier - C.E.P.R. Discussion Papers - 2012
Has the US dollar delivered the benefits that the rest of the world is expecting from its holdings of international liquidity? US government debt has been liquid and safe, and it is supplied in sufficient quantity. But it has given a low return to the countries that accumulated the most...
Persistent link: https://www.econbiz.de/10011084062
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Hyperbolic Discounting and Positive Optimal Inflation
Graham, Liam; Snower, Dennis J. - C.E.P.R. Discussion Papers - 2011
The Friedman rule states that steady-state welfare is maximized when there is deflation at the real rate of interest. Recent work by Khan et al. (2003) uses a richer model but still finds deflation optimal. In an otherwise standard new Keynesian model we show that, if households have hyperbolic...
Persistent link: https://www.econbiz.de/10009643503
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The role of central bank transparency for guiding private sector forecasts
Ehrmann, Michael; Eijffinger, Sylvester C W; … - C.E.P.R. Discussion Papers - 2009
There is a broad consensus in the literature that costs of information processing and acquisition may generate costly disagreements in expectations among economic agents, and that central banks may play a central role in reducing such dispersion in expectations. This paper analyses empirically...
Persistent link: https://www.econbiz.de/10008458290
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Central Bank Independence: An Update of Theory and Evidence
Berger, Helge; de Haan, Jakob; Eijffinger, Sylvester C W - C.E.P.R. Discussion Papers - 2000
This paper reviews recent research on central bank independence (CBI). After we have distinguished between independence and conservativeness, the literature on optimal inflation contracts is discussed, followed by research in which the inflationary bias is endogenized. Finally, the various...
Persistent link: https://www.econbiz.de/10005662256
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Monetary Policies for Developing Countries: The Role of Institutional Quality
Huang, Haizhou; Wei, Shang-Jin - C.E.P.R. Discussion Papers - 2005
Weak public institutions, including high levels of corruption, characterize many developing countries. With a simple model, we demonstrate that institutional quality has important implications for the design of monetary policies and can produce several departures from the conventional wisdom. We...
Persistent link: https://www.econbiz.de/10005789083