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Dellas, Harris; Tavlas, George - C.E.P.R. Discussion Papers - 2003

We compare monetary union to flexible exchange rates in an asymmetric, three-country model with active monetary policy. Unlike Friedman's (1953) case for flexible rates, we find that countries with high degree of nominal wage rigidity are better off in a monetary union. Their benefits increase...

Persistent link: https://www.econbiz.de/10005504261

Legal, Actual and Desirable Independence: A Case Study of the Bank of Israel

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

This paper documents the evolution of the legal independence of the Bank of Israel since its creation in 1954 to present times, provides an international comparison, and assesses the changes in the actual independence of the Bank on a yearly basis following the 1985 stabilization of inflation....

Persistent link: https://www.econbiz.de/10005497895

Money is an Experience Good: Competition and Trust in the Private Provision of Money

Marimon, Ramon; Nicolini, Juan Pablo; Teles, Pedro - C.E.P.R. Discussion Papers - 2009

We study the interplay between competition and trust as efficiency-enhancing mechanims in the private provision of money. With commitment, trust is automatically achieved and competition ensures efficiency. Without commitment, competition plays no role. Trust does play a role but requires a...

Persistent link: https://www.econbiz.de/10004976784

Money as a Unit of Account

Doepke, Matthias; Schneider, Martin - C.E.P.R. Discussion Papers - 2013

We develop a theory that rationalizes the use of a dominant unit of account in an economy. Agents enter into non …

Persistent link: https://www.econbiz.de/10011084311

Safe Assets, Liquidity and Monetary Policy

Benigno, Pierpaolo; Nisticò, Salvatore - C.E.P.R. Discussion Papers - 2013

This paper studies monetary policy in models where multiple assets have different liquidity properties: safe and … "pseudo-safe" assets coexist. A shock worsening the liquidity properties of the pseudo-safe assets raises interest … liquidity shock and improves risk sharing between borrowers and savers. …

Persistent link: https://www.econbiz.de/10011084662

Asymmetry in the ERM: A Case Study of French and German Interest Rates Since Basel-Nyborg

Gardner, Edward H; Perraudin, William - C.E.P.R. Discussion Papers - 1993

We study empirically daily French and German interest rate changes since the Basel-Nyborg agreement of September 1987. In particular, we ask whether the shock associated with German unification altered the degree of leadership of German monetary policy in the ERM. We conclude that Germany's...

Persistent link: https://www.econbiz.de/10005067378

Nominal Debt as a Burden on Monetary Policy

Díaz-Giménez, Javier; Giovannetti, Giorgia; Marimon, Ramon - C.E.P.R. Discussion Papers - 2007

We characterize the optimal sequential choice of monetary policy in economies with either nominal or indexed debt. In a model where nominal debt is the only source of time inconsistency, the Markov-perfect equilibrium policy implies the progressive depletion of the outstanding stock of debt,...

Persistent link: https://www.econbiz.de/10005067518

The Elusive Welfare Economics of Price Stability As A Monetary Policy Objective: Should New Keynesian Central Bankers Persue Price Stability

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2004

The Paper studies the inflation rate associated with optimal monetary policy in a standard suite of DSGE models, when fiscal policy is either unrestricted optimal or restricted but supportive of monetary policy. Full nominal price flexibility, nominal prices set one period in advance and...

Persistent link: https://www.econbiz.de/10005067586

Is Inflation Always and Everywhere a Monetary Phenomenon?

De Grauwe, Paul; Polan, Magdalena - C.E.P.R. Discussion Papers - 2001

Using a sample of about 160 countries over the last thirty years we test for the quantity theory relationship between …

Persistent link: https://www.econbiz.de/10005656210

Optimal and Time-Consistent Monetary and Fiscal Policy with Heterogeneous Agents

Albanesi, Stefania - C.E.P.R. Discussion Papers - 2003

This Paper studies the structure and time consistency of optimal monetary policy from a public finance perspective in an economy where agents differ in transaction patterns and asset holdings. I find that heterogeneity breaks the link between lack of government commitment and high inflation,...

Persistent link: https://www.econbiz.de/10005656402