OECD countries, as in previous studies, and one to a sample of developing countries, using recent World Bank data. We find … predictor of non-monotonic effects. Using the World Bank data, the situations in which the non-monotonic response of national …

the monetary stability objective, and supply-side fiscal policy to the unemployment objective. In a second-best world … and world interest rate shocks do not occur. Alternatively, they are optimal if monetary stability carries no weight in …

In this paper I examine issues of optimal stabilization in two types of world economy, a competitive one where all …, according to which there should be a periodic fixing of exchange rates at levels consistent with equilibrium real rates. World … the internal balance objectives of individual economies. In a first-best world, where all economies use both monetary and …

This paper reviews some of the most prominent asset price bubbles from the past 400 years and documents how central … banks (or other institutions) reacted to those bubbles. The historical evidence suggests that the emergence of bubbles is … also suggests that a purely passive “cleaning up the mess” stance toward the buildup of bubbles is, in many cases, costly …