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The global dimension of inflation: evidence from factor-augmented Phillips curves
Eickmeier, Sandra; Moll, Katharina - Deutsche Bundesbank - 2008
We examine the global dimension of inflation in 24 OECD countries between 1980 and 2007 in a traditional Phillips curve … to affect inflation through (the common part of) domestic demand and supply conditions. Our most important result is that … the common component of changes in unit labor costs notably affects inflation. We also find evidence that movements in …
Persistent link: https://www.econbiz.de/10005083248
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The timing and magnitude of exchange rate overshooting
Hoffmann, Mathias; Søndergaard, Jens; Westelius, Niklas J. - Deutsche Bundesbank - 2007
Empirical evidence suggests that a monetary shock induces the exchange rate to overshoot its long-run level. The estimated magnitude and timing of the overshooting, however, varies across studies. This paper generates delayed overshooting in a new Keynesian model of a small open economy by...
Persistent link: https://www.econbiz.de/10005083321
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Real currency appreciation in accession countries: Balassa-Samuelson and investment demand
Fischer, Christoph - Deutsche Bundesbank - 2002
The Balassa-Samuelson effect is usually seen as the prime explanation of the continuous real appreciation of central and east European (CEE) transition countries' currencies against their western counterparts. The response of a small country's real exchange rate to various shocks is derived in a...
Persistent link: https://www.econbiz.de/10005083090
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The coordination channel of foreign exchange intervention: a nonlinear microstructural analysis
Reitz, Stefan; Taylor, Mark P. - Deutsche Bundesbank - 2006
The coordination channel has been proposed as a means by which foreign exchange market intervention may be effective, in addition to the traditional portfolio balance and signaling channels. If strong and persistent misalignments of the exchange rate are caused by non-fundamental influences,...
Persistent link: https://www.econbiz.de/10005083132
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Exchange rate dynamics in a target zone: a heterogeneous expectations approach
Bauer, Christian; De Grauwe, Paul; Reitz, Stefan - Deutsche Bundesbank - 2007
We present a simple behavioral model with chartists and fundamentalists and analyze their trading behavior in a floating regime and in a target zone regime. Regarding the floating regime the model replicates the well-known stylized facts like excessive volatility, fat tails, volatility...
Persistent link: https://www.econbiz.de/10005083304
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On the nonlinear influence of Reserve Bank of Australia interventions on exchange rates
Reitz, Stefan; Ruelke, Jan C.; Taylor, Mark P. - Deutsche Bundesbank - 2010
Australian dollar exchange rate in the sense that mean reversion increases with the degree of exchange rate misalignment. Second …
Persistent link: https://www.econbiz.de/10008595898
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Deciding to peg the exchange rate in developing countries: the role of private-sector debt
Harms, Philipp; Hoffmann, Mathias - Deutsche Bundesbank - 2009
We argue that a higher share of the private sector in a country's external debt raises the incentive to stabilize the exchange rate. We present a simple model in which exchange rate volatility does not affect agents' welfare if all the debt is incurred by the government. Once we introduce...
Persistent link: https://www.econbiz.de/10008474655
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Transmission of nominal exchange rate changes to export prices and trade flows and implications for exchange rate policy
Hoffmann, Mathias; Holtemöller, Oliver - Deutsche Bundesbank - 2009
We discuss how the welfare ranking of fixed and flexible exchange rate regimes in a New Open Economy Macroeconomics model depends on the interplay between the degree of exchange rate pass-through and the elasticity of substitution between home and foreign goods. We identify combinations of these...
Persistent link: https://www.econbiz.de/10005059025
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China's role in global inflation dynamics
Eickmeier, Sandra; Kühnlenz, Markus - Deutsche Bundesbank - 2013
analyze China's role in global inflation dynamics. We identify Chinese supply and demand shocks and examine their … to be more strongly affected than consumer prices by Chinese shocks. The overall share of international inflation …
Persistent link: https://www.econbiz.de/10010984723
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Price convergence in the EMU? Evidence from micro data
Fischer, Christoph - Deutsche Bundesbank - 2009
The establishment of European monetary union (EMU) was widely expected to cause price convergence among member states. In an investigation of this claim, the present study avoids problems of comparability and representativeness by using an extremely detailed and comprehensive scanner database on...
Persistent link: https://www.econbiz.de/10005083152