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This paper tests whether the proposition that globalisation has led to greater sensitivity of domestic inflation to the global output gap (the "global output gap hypothesis") holds for the euro area. The empirical analysis uses quarterly data over the period 1979–2003. Measures of the global...
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spread immediately throughout the world owing to the globalization of banking. In the model, financial intermediaries (FIs … their net worths matter. Our model reveals that under FIs' globalization, adverse shocks that hit one country affect the …' globalization, net worth shock, and credit constraints are key to understanding the recent financial crisis. …
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Much empirical work has documented a negative correlation between different measures of globalization or openness and …
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Greater openness has become an almost universal feature of modern, developed economies. This paper develops a workhorse international model, and explores the role of standard monetary policy rules applied to an open economy. For this purpose, I build a two-country DSGE model with monopolistic...
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