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Wickens, Michael R. - C.E.P.R. Discussion Papers - 2007

It is widely recognised that the "one-size-fits-all" monetary policy of the euro-zone is a potential problem. How much … of a problem has not been much investigated. It is argued in this paper that it may result in the euro not being … competitiveness. A formal theory of inflation in the euro-zone based on an open-economy version of the New Keynesian model is used to …

Persistent link: https://www.econbiz.de/10005789110

The Macroeconomic Costs and Benefits of the EMU and other Monetary Unions: An Overview of Recent Research

Beetsma, Roel; Giuliodori, Massimo - C.E.P.R. Discussion Papers - 2009

. We are primarily interested in Europe’s monetary union. Given that unification entails the loss of a policy instrument … discussion of monetary unification outside Europe. The cost-benefit trade-off of unification may differ substantially between …

Persistent link: https://www.econbiz.de/10008477181

Keynesian Economics, Monetary Policy and the Business Cycle - New and Old

Cukierman, Alex - C.E.P.R. Discussion Papers - 2005

After a brief review of the main differences between New and Old Keynesian economics from the 1960s this paper focuses on a tension between traditional sluggish measures of potential output commonly used by policy-makers and the New Keynesian (NK) notion of this variable which conceptualizes it...

Persistent link: https://www.econbiz.de/10005504456

Is Numérairology the Future of Monetary Economics? Unbundling Numéraire and Medium of Exchange Through a Virtual Currency and a Shadow Exchange Rate

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2007

The paper discusses some fundamental problems in monetary economics associated with the determination and role of the numéraire. The issues are introduced by formalising a proposal, attributed to Eisler, to remove the zero lower bound on nominal interest rates by unbundling the numéraire and...

Persistent link: https://www.econbiz.de/10005504750

Political Economics and Macroeconomic Policy

Persson, Torsten; Tabellini, Guido - C.E.P.R. Discussion Papers - 1997

This paper surveys the recent literature on the theory of macroeconomic policy. We study the effect of various incentive constraints on the policy-making process, such as lack of credibility, political opportunism, political ideology, and divided government. The survey is organized in three...

Persistent link: https://www.econbiz.de/10005498016

Understanding Financial Crises: Causes, Consequences, and Policy Responses

Claessens, Stijn; Kose, Ayhan; Laeven, Luc; Valencia, Fabian - C.E.P.R. Discussion Papers - 2013

The global financial crisis of 2007-09 has led to an intensive research program analyzing a wide range of issues related to financial crises. This paper presents a summary of a forthcoming book, Financial Crises: Causes, Consequences, and Policy Responses, that includes 19 contributions...

Persistent link: https://www.econbiz.de/10011083226

Exchange Rate Flexibility under the Zero Lower Bound

Cook, David; Devereux, Michael B - C.E.P.R. Discussion Papers - 2014

An independent currency and a flexible exchange rate generally helps a country in adjusting to macroeconomic shocks. But recently in many countries, interest rates have been pushed down close to the lower bound, limiting the ability of policy-makers to accommodate shocks, even in countries with...

Persistent link: https://www.econbiz.de/10011083336

The Simple Analytics of Helicopter Money:Why It Works – Always

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2014

This paper aims to provide a rigorous analysis of Milton Friedman’s famous parable of the ‘helicopter’ drop of money. A helicopter drop of money is a permanent/irreversible increase in the nominal stock of fiat base money with a zero nominal interest rate, which respects the intertemporal...

Persistent link: https://www.econbiz.de/10011084422

Financial Crises: Explanations, Types, and Implications

Claessens, Stijn; Kose, Ayhan - C.E.P.R. Discussion Papers - 2013

This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper...

Persistent link: https://www.econbiz.de/10011084455

The Great Leveraging

Taylor, Alan M. - C.E.P.R. Discussion Papers - 2012

What can history can tell us about the relationship between the banking system, financial crises, the global economy, and economic performance? Evidence shows that in the advanced economies we live in a world that is more financialized than ever before as measured by importance of credit in the...

Persistent link: https://www.econbiz.de/10011084609