each from the perspective of the rest of the world (ROW). We show that while U.S. monetary policy shocks act as financial …

an inflation surprise and the nominal exchange rate can tell us something about how monetary policy is conducted …. Specifically, we show that 'bad news' about inflation -- that it is higher than expected -- can be 'good news' for the nominal … exchange rate -- that it appreciates on this news -- if the central bank has an inflation target that it implements with a …

We argue that the Great Inflation experienced by both the United Kingdom and the United States in the 1970s has an … common doctrine underlying the systematic monetary policy choices in each country. The nonmonetary approach to inflation …

Over the 21st century, and especially since 2014, global exchange rate volatility has been trending downwards, notably … continued through the Covid-19 recession to date: unusual, as exchange volatility generally rises in US recessions. Compared to … measures of stock price volatility, exchange rate volatility rivals the lows reached in the heyday of Bretton Woods I. This …

choices matter for output volatility and the medium-term level of inflation. Greater monetary independence is associated with … inflation rate. We find that trilemma policy configurations and external finances affect output volatility through the … lower output volatility while greater exchange rate stability implies greater output volatility, which can be mitigated if a …

appreciates in the medium run, while an increase in the volatility of productivity leads to a dollar depreciation. We propose a … volatility shocks is consistent with the empirical evidence. Furthermore we show that risk factors and interest-rate smoothing …