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pool of unemployed at the onset of a recession. The role of training costs is to explain the simultaneous decline in …
Persistent link: https://www.econbiz.de/10009292898
We explore the impact of vertical specialization—trade in goods across multiple stages of production—on the relationship between trade and international business cycle synchronization. We develop a model in which the degree of vertical specialization is endogenously determined by comparative...
Persistent link: https://www.econbiz.de/10005367956
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Key macroeconomic variables such as GDP and investment typically display a V-shaped pattern during major emerging market crises. A notable exception to that pattern is intermediated credit, which follows an L-shaped trajectory instead: it declines at first in lockstep with economic activity, but...
Persistent link: https://www.econbiz.de/10005346059
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In discussions of the likely implications for Europe of EMU, the United States is often cited as an example of a monetary union, while the United States' central bank, the Federal Reserve System, is cited as a model for how a central bank would function in a monetary union. While the costs and...
Persistent link: https://www.econbiz.de/10005346137
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employment and output volatility, particularly on the Mexican maquiladora industry. Their empirical results indicate that … employment and output in the offshoring manufacturing plants in Mexico are more volatile than their counterparts in the U.S. Such … that the volatility in employment and output in Mexico's maquiladoras is greater than the one estimated by BFH. Therefore …
Persistent link: https://www.econbiz.de/10009292897
We consider whether or not a central bank should respond directly to financial market conditions when setting monetary policy. Specifically, should a central bank put weight on interbank lending spreads in its Taylor rule policy function? ; Using a model with risk and balance sheet effects in...
Persistent link: https://www.econbiz.de/10009292919