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Sharing the burden: monetary and fiscal responses to a world liquidity trap
Cook, David; Devereux, Michael B. - Federal Reserve Bank of Dallas - 2011
With integrated trade and financial markets, a collapse in aggregate demand in a large country can cause "natural real interest rates" to fall below zero in all countries, giving rise to a global "liquidity trap." This paper explores the optimal policy response to this type of shock, when...
Persistent link: https://www.econbiz.de/10009292929
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Keynesian economics without the LM and IS curves: a dynamic generalization of the Taylor-Romer model
Koenig, Evan F. - Federal Reserve Bank of Dallas - 2008
half of the IS-LM model and replaces it with a rule for setting the interest rate as a function of inflation and the output … mismatch. The modified model is a dynamic system in output and inflation, with a unique stable path that behaves very much like …
Persistent link: https://www.econbiz.de/10004993781
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Export shocks and the zero bound trap
Fujiwara, Ippei - Federal Reserve Bank of Dallas - 2010
When a small open economy experiences a sufficiently large negative export shock, it is vulnerable to falling into a zero bound trap. In addition, such a shock can have very large impact on the economy compared to the case when the zero bound is not a binding constraint. This could be one...
Persistent link: https://www.econbiz.de/10008690997
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Do good institutions promote counter-cyclical macroeconomic policies?
Calderón, César; Duncan, Roberto; Schmidt-Hebbel, Klaus - Federal Reserve Bank of Dallas - 2012
The literature has argued that developing countries are unable to adopt counter-cyclical monetary and fiscal policies due to financial imperfections and unfavorable politicaleconomy conditions. Using a world sample of 115 industrial and developing countries for 1984-2008, we find that the level...
Persistent link: https://www.econbiz.de/10011026846
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Exchange and interest rate management and the international transmission of disturbances
Cox, W. Michael; McTaggart, Douglas - Federal Reserve Bank of Dallas - 1988
Persistent link: https://www.econbiz.de/10005514289
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Pricing-to-market and optimal interest rate policy
Cooke, Dudley - Federal Reserve Bank of Dallas - 2014
I study optimal interest rate policy in a small open economy with consumer search in the product market. When there are search frictions, firms price-to-market, with implications for the design of monetary policy. Country-specific shocks generate deviations from the law of one price for traded...
Persistent link: https://www.econbiz.de/10011084958
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A perspective on Mexico
Fisher, Richard W. - Federal Reserve Bank of Dallas - 2006
Remarks for the Jose Cuervo Tequila Talk, Institute of the Americas, La Jolla, California, April 5, 2006 ; "For Mexico and the U.S. states along its border, the stakes are high. Geographic proximity to the United States and ease of transport are key aspects of Mexico's comparative advantage...
Persistent link: https://www.econbiz.de/10010723078
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Financial globalization, financial frictions and optimal monetary policy
Faia, Ester; Iliopulos, Eleni - Federal Reserve Bank of Dallas - 2010
How should monetary policy be optimally designed in an environment with high degrees of financial globalization? To answer this question we lay down an open economy model where net lending toward the rest of the world is constrained by a collateral constraint motivated by limited enforcement....
Persistent link: https://www.econbiz.de/10008465685
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How should central banks define price stability?
Wynne, Mark A. - Federal Reserve Bank of Dallas - 2008
. First, should central banks target broad or narrow measures of inflation? Second, should central banks target headline or … core measure of inflation? And third, should central banks define price stability as prevailing at some positive measured … rate of inflation? …
Persistent link: https://www.econbiz.de/10005712532
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Inflation targeting and the anchoring of inflation expectations: cross-country evidence from consensus forecasts
Davis, Jonathan Scott; Presno, Ignacio - Federal Reserve Bank of Dallas - 2014
Using survey data of inflation expectations across a 36 developed and developing countries, this paper examines whether … the adoption of inflation targeting has helped to anchor inflation expectations. We examine the response of inflation … expectations following a shock to inflation, inflation expectations, and oil prices. For the 13 countries that adopted inflation …
Persistent link: https://www.econbiz.de/10010772603