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Dornbusch, Rudiger; Favero, Carlo A.; Giavazzi, Francesco - C.E.P.R. Discussion Papers - 1998

This paper discusses a number of issues that the newly constituted board of the European Central Bank (ECB) will face early on. We show how conducting a European monetary policy is very different from living under the protective umbrella of the Bundesbank. We discuss voting on the ECB board, and...

Persistent link: https://www.econbiz.de/10005114456

Can Openness Deter Corruption? The Role of Foreign Direct Investment

Larrain B., Felipe; Tavares, José - C.E.P.R. Discussion Papers - 2007

The economics literature provides ample evidence that higher corruption discourages FDI inflows. In this paper we address, for the first time in the literature in a systematic way, the exact reverse link, i.e., the empirical effect of FDI inflows on corruption. We present a simple model that...

Persistent link: https://www.econbiz.de/10005504415

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

Optimal Monetary Policy using a VAR

Polito, Vito; Wickens, Michael R. - C.E.P.R. Discussion Papers - 2008

where the dynamic constraint is based on a VAR model of the economy which we call the PVAR method. We argue that the VAR … under control should not be derived simply by replacing the VAR equation for the policy instruments by an optimal control … rule because this alters the stochastic structure of the VAR. Instead, one should first transform the VAR in order to …

Persistent link: https://www.econbiz.de/10005497823

Sticky Prices and Monetary Policy: Evidence from Disaggregated US Data

Boivin, Jean; Giannoni, Marc; Mihov, Ilian - C.E.P.R. Discussion Papers - 2007

This paper disentangles fluctuations in disaggregated prices due to macroeconomic and sectoral conditions using a factor-augmented vector autoregression estimated on a large data set. On the basis of this estimation, we establish eight facts: (1) Macroeconomic shocks explain only about 15% of...

Persistent link: https://www.econbiz.de/10005497865

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

The Monetary Transmission Mechanism: Evidence from the G-7 Countries

Gerlach, Stefan; Smets, Frank - C.E.P.R. Discussion Papers - 1995

large VAR-literature in which only short-run restrictions are used, disappears. This suggests that the puzzle is due to the …

Persistent link: https://www.econbiz.de/10005498157

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

The ECB and the banks: the tale of two crises

Reichlin, Lucrezia - C.E.P.R. Discussion Papers - 2013

The paper is a narrative on monetary policy and the banking sector during the two recent euro area recessions. It shows that while in the two episodes of recession and financial stress the ECB acted aggressively providing liquidity to banks, the second recession, unlike the first, has been...

Persistent link: https://www.econbiz.de/10011083257