Showing 1 - 10 of 236
We use a spatial competition based model in a two-stage game setup to assess whether equilibrium in exchange rates among the leading currencies is attainable. We show that a stable equilibrium can be reached in the case of two leading currencies, but not in the case of three. In our model,...
Persistent link: https://www.econbiz.de/10005561175
This paper surveys the existing literature on the determinants of household savings and credit in developing countries and examines the ways in which macro-level policies might impact on household financial behaviour.
Persistent link: https://www.econbiz.de/10005556083
We analyze the endogenous appearance of money substitutes, their interaction with outside money, and resulting distortions in the price system of an economy with large monopolies and wide-spread informal networks. The economy consists of productive, individually optimizing agents and less...
Persistent link: https://www.econbiz.de/10005561089
This paper develops and estimates an unobserved components model for purposes of monetary policy analysis and inflation targeting in a small open economy. Cyclical components are modeled as a multivariate linear rational expectations model of the monetary transmission mechanism, while trend...
Persistent link: https://www.econbiz.de/10005412638
Este documento analiza el impacto de un shock en la tasa de interés externa en la economía chilena. Con este fin, se estima un modelo empírico de Vectores Autoregresivos y adicionalmente se desarrolla un modelo estocástico de equilibrio general calibrado y parametrizado para la economía...
Persistent link: https://www.econbiz.de/10005561346
This paper offers an alternative explanation for the behavior of postwar US inflation by measuring a novel source of monetary policy time- inconsistency due to Cukierman (2002). In the presence of asymmetric preferences, the monetary authorities end up generating a systematic inflation bias...
Persistent link: https://www.econbiz.de/10005412629
Sufficiently flexible labour markets are considered an important precondition for countries to benefit from membership in the monetary union. Economic policy coordination within the European Community is extensive and includes issues related to labour market structures. In this paper we study...
Persistent link: https://www.econbiz.de/10005412650
In this paper we assess whether monetary variables convey marginal information on the state of the Italian economy, taking as a benchmark the forecasting errors generated by the quarterly model used by the Bank of Italy in the 1990s. We follow two alternative approaches. First we map monetary...
Persistent link: https://www.econbiz.de/10005412693
This paper assesses the ECB’s performance, which the author finds to be seriously lacking but which is of paramount importance to understanding euroland’s ongoing stagnation and fragility. A main finding is that the series of policy blunders which characterized the bank’s conduct features...
Persistent link: https://www.econbiz.de/10005412750
Monetary policy has been usually analyzed in the context of small macroeconomic models where central banks are allowed to exploit a limited amount of information. Under these frameworks, researchers typically derive the optimality of aggressive monetary rules, contrasting with the observed...
Persistent link: https://www.econbiz.de/10005412848