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Financial Market Risk and U.S. Money Demand

Cook, David; Choi, Woon Gyu - International Monetary Fund (IMF) - 2007

This paper examines empirically U.S. broad money demand emphasizing the role of financial market risk. We find that money demand rises with the liquidity risk of stock markets or the credit risk of corporate bond markets. After controlling for the effect of financial market risk, money demand...

Persistent link: https://www.econbiz.de/10005248246

The Inverted Fisher Hypothesis; Inflation Forecastability and Asset Substitution"

Choi, Woon Gyu - International Monetary Fund (IMF) - 2000

This paper examines the implications of inflation persistence for the inverted Fisher hypothesis that nominal interest … rates do not adjust to inflation because of a high degree of substitutability between money and bonds. It is emphasized that … the substitutability between nominal assets and capital renders the hypothesis inconsistent with the data when inflation …

Persistent link: https://www.econbiz.de/10005826139

Endogenous Money Supply and Money Demand

Choi, Woon Gyu; Oh, Seonghwan - International Monetary Fund (IMF) - 2000

This paper explores the behavior of money demand by explicitly accounting for the money supply endogeneity arising from endogenous monetary policy and financial innovations. Our theoretical analysis indicates that money supply factors matter in the money demand function when the money supply...

Persistent link: https://www.econbiz.de/10005604993

Optimal Monetary Policy in a Small Open Economy with Habit Formation and Nominal Rigidities

Jung, Yongseung; Choi, Woon Gyu - International Monetary Fund (IMF) - 2003

Introducing habit formation into an open economy macroeconomic model with price stickiness, we examine the characteristics of an optimal monetary policy. We find that, first, the optimal policy rule entails interest rate smoothing and responds to the lagged values of the foreign interest rate...

Persistent link: https://www.econbiz.de/10005605338

Monetary Transmission of Global Imbalances in Asian Countries

Lee, Il Houng; Choi, Woon Gyu - International Monetary Fund (IMF) - 2010

gaps on output growth, inflation, and net saving rates using panel data for 20 Asian countries for 1980-2008. We find a … significant pass-through of the global monetary gap to domestic monetary gaps, which in turn affect output growth and inflation …

Persistent link: https://www.econbiz.de/10008671301

Fire Sales and the Financial Accelerator

Choi, Woon Gyu; Cook, David - International Monetary Fund (IMF) - 2010

During periods of financial turmoil, increases in risk lead to higher default, foreclosure, and fire sales. This paper introduces a costly liquidation process for foreclosed collateral and endogenous recovery rates in a dynamic stochastic general equilibrium model of the financial accelerator....

Persistent link: https://www.econbiz.de/10008560453