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Trend Inflation and Exchange Rate Dynamics : A New Keynesian Approach
Kano, Takashi - 2016
The paper studies exchange rate implications of trend inflation within a two-country New Keynesian (NK) model under … incomplete international financial markets. A NK Phillips curve generalized by trend inflation with a positive long-run mean … implies an expectational difference equation of inflation with higher-order leads of expected inflation. The resulting two …
Persistent link: https://www.econbiz.de/10012977289
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Global Factors and Trend Inflation
Kamber, Gunes - 2019
We develop an empirical model to study the influence of global factors in driving trend inflation and the inflation gap … factors can have a sizeable influence on the inflation gap, they play only a marginal role in driving trend inflation. Much of … the influence of global factors in the inflation gap may be reflecting commodity price shocks. Finally, we find that the …
Persistent link: https://www.econbiz.de/10012864329
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Impact of Uncertainty Shocks on Income and Wealth Inequality
Choi, Sangyup; Phi, Jeeyeon - 2023
We analyze the distributional consequences of uncertainty shocks in the U.S. economy at a business cycle frequency. Our findings reveal that uncertainty shocks have heterogeneous effects across income and wealth distribution. While their impact on income inequality appears marginal when measured...
Persistent link: https://www.econbiz.de/10014352815
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Currency Intervention : A Case Study of an Emerging Market
Fry, Renee - 2012
Using a unique dataset on daily foreign exchange intervention and a new methodological framework of a latent factor model of central bank intervention, this paper addresses the effects of intervention in an emerging market. Events in financial markets from 2002 to 2010 provide a natural...
Persistent link: https://www.econbiz.de/10013104448
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The Implications of Liquidity Expansion in China for the US Dollar
Kang, Wensheng - 2016
dollar exchange rate value using US and non-US global data on inflation, output, interest rates, and liquidity on the US …
Persistent link: https://www.econbiz.de/10013000233
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The Contribution of Domestic, Regional and International Factors to Latin America's Business Cycle
Boschi, Melisso - 2008
This paper quantifies the relative contribution of domestic, regional and international factors to the fluctuation of domestic output in six key Latin American (LA) countries: Argentina, Bolivia, Brazil, Chile, Mexico and Peru. Using quarterly data over the period 1980:1-2003:4, a multi-variate,...
Persistent link: https://www.econbiz.de/10012722663
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Explaining International Business Cycle Synchronization : Recursive Preferences and the Terms of Trade Channel
Kollmann, Robert - 2017
The business cycles of advanced economies are synchronized. Standard macro models fail to explain that fact. This paper presents a simple model of a two-country, two-traded-good, complete-financial-markets world in which country-specific productivity shocks generate business cycles that are...
Persistent link: https://www.econbiz.de/10012960598
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Do Immigrants’ Funds Affect the Exchange Rate?
Aziz, Nusrate - 2017
Using annual data over 1966-2014 from the Citizenship and Immigration statistics archives of Canada, we investigate how the funds brought into Canada by immigrants, affects the real effective exchange rate (REER) of Canada. We employ the ARDL bounds testing (Pesaran, Shin and Smith, 1999) and...
Persistent link: https://www.econbiz.de/10012944824
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Risk Sharing in a World Economy with Uncertainty Shocks
Kollmann, Robert - 2015
This paper analyzes the effects of output volatility shocks and of risk appetite shocks on the dynamics of consumption, trade flows and the real exchange rate, in a two-country world with recursive preferences and complete financial markets. When the risk aversion coefficient exceeds the inverse...
Persistent link: https://www.econbiz.de/10013011666
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Foreign Reserve Accumulation and the Mercantilist Motive Hypothesis
Carvalho, Patrick - 2014
A fivefold increase in central bank foreign reserves across the globe over the past fifteen years has prompted the question of whether this constitutes a new form of mercantilism. According to this view, countries accumulate foreign reserves in order to support export promotion by influencing...
Persistent link: https://www.econbiz.de/10013058983