Showing 1 - 9 of 9
It is not common for an entire scholarly literature to be based on a fallacy, that is, 'on faulty reasoning; misleading or unsound argument'. The 'fiscal theory of the price level', recently re-developed by Woodford, Cochrane, Sims and others, is an example of a fatally flawed research...
Persistent link: https://www.econbiz.de/10012471482
country world with a fixed exchange rate,internationally mobile capital and endogenous interest rates, only one country can …
Persistent link: https://www.econbiz.de/10012478073
The paper demonstrates that the concepts of dynamic controllability are useful for the theory of economic policy by establishing four propositions. First dynamic controllability is a central concept in stabilization policy. Second, the ability to achieve a target state, even if it cannot be...
Persistent link: https://www.econbiz.de/10012478412
The paper considers the implications of the rational expectations New Classical Macroeconomics revolution for the 'rules versus discretion' debate. The following issues are covered: 1) The ineffectiveness of anticipated stabilization policy, 2) Non-clausal models and rational expectations, 3)...
Persistent link: https://www.econbiz.de/10012478549
The paper considers the implications of the rational expectations - New Classical Macroeconomics revolution for the "rules versus discretion" debate. The following issues are covered 1) The ineffectiveness of anticipated stabilization policy, 2) Non-causal models and rational expectations, 3)...
Persistent link: https://www.econbiz.de/10012478557
This paper analyzes Krugman's contention that there is a "gold standard paradox" in the speculative attack literature. The paradox occurs if a country's currency appreciates after it runs out of gold or equivalently if a speculative attack can happen only after the country "naturally" runs out...
Persistent link: https://www.econbiz.de/10012475863
, raise the world interest rate, crowd out capital formation at home and abroad, and lead to a loss of foreign assets …
Persistent link: https://www.econbiz.de/10012477660
The paper analyzes the modalities and consequences of a breakdown of cooperation between the monetary authorities of inflation-prone Periphery Countries that use an exchange rate peg as an anti- inflationary device, when the Center is hit by an aggregate demand shock. Cooperation in the...
Persistent link: https://www.econbiz.de/10012473742
In a competitive two-country overlapping generations model with perfect capital mobility, a plan that is individually Pareto optimal (that is Pareto optimal with respect to individual preferences) can be sustained without coordination of national fiscal policies when the fiscal arsenal is...
Persistent link: https://www.econbiz.de/10012475706