Similar Search Results

Habit Formation and Fiscal Transmission in Open Economies

Cardi, Olivier; Müller, Gernot - C.E.P.R. Discussion Papers - 2010

model. We find that i) government spending increases output and induces a simultaneous decline of investment and the current … account, but does not affect consumption; ii) the responses of output and investment are smaller in more open economies, while … simultaneous decline in investment and the current account. …

Persistent link: https://www.econbiz.de/10008684676

Simple Rules for the Open Economy: Evaluating Alternative Proposals

Tirelli, Patrizio; Vines, David - C.E.P.R. Discussion Papers - 1991

The paper evaluates some proposals for macroeconomic stabilization in an open economy, which take the form of simple rules. The first rule assigns monetary policy to inflation control and does not require fiscal intervention. The second rule adds fiscal control of a foreign wealth target to the...

Persistent link: https://www.econbiz.de/10005067614

Fiscal Policy Independence in a Monetary Union

Masson, Paul R; Melitz, Jacques - C.E.P.R. Discussion Papers - 1990

Do plans for a monetary union in Europe call for limits on the freedom of the member countries to use fiscal policy? To provide a tentative answer, we simulate the IMF model MULTIMOD, given various shocks, in the case of a European Monetary Union consisting only of France and Germany. The...

Persistent link: https://www.econbiz.de/10005791854

International Business Cycles and the Dynamics of the Current Account

Elliott, Graham; Fatás, Antonio - C.E.P.R. Discussion Papers - 1995

This paper analyses the transmission of productivity shocks across countries and how the responses of investment and … find that productivity increases lead to domestic investment booms and current account deficits. Investment in other …-specific shocks, domestic and foreign investment should move in opposite directions. We also find quantitative differences among the …

Persistent link: https://www.econbiz.de/10005123648

Exchange Rate Dynamics Redux

Obstfeld, Maurice; Rogoff, Kenneth - C.E.P.R. Discussion Papers - 1995

We develop an analytically tractable two-country model that marries a full account of global macroeconomic dynamics to a supply framework based on monopolistic competition and sticky nominal prices. The model offers simple and intuitive predictions about exchange rates and current accounts that...

Persistent link: https://www.econbiz.de/10005497945

A Multilateral Payments Union for Eastern Europe?

Bofinger, Peter - C.E.P.R. Discussion Papers - 1990

The paper analyzes the role of a multilateral payments union (PU) between East European countries (EEPU) as an intermediate solution in the process to full convertibility. After a description of the main functions of a PU, which is based on the historical model of the European Payments Union, it...

Persistent link: https://www.econbiz.de/10005497971

What drives the German current account? And how does it affect other EU member states?

In 'T Veld, Jan; Kollmann, Robert; Ratto, Marco; … - C.E.P.R. Discussion Papers - 2014

investment would raise German GDP and reduce the current account surplus, but the effects on the surplus are likely to be weak. …

Persistent link: https://www.econbiz.de/10011084337

Current Account Sustainability: Selected East Asian and Latin American Experiences

Milesi-Ferretti, Gian Maria; Razin, Assaf - C.E.P.R. Discussion Papers - 1996

A number of developing countries have run large and persistent current account deficits in both the late-1970s/early-1980s and in the early-1990s, raising the issue of whether these persistent imbalances are sustainable. This paper puts forward a notion of current account sustainability and...

Persistent link: https://www.econbiz.de/10005791270

What Drives US Foreign Borrowing? Evidence on External Adjustment to Transitory and Permanent Shocks

Corsetti, Giancarlo; Konstantinou, Panagiotis T - C.E.P.R. Discussion Papers - 2009

The joint dynamics of US net output, consumption, and (valuation-adjusted) foreign assets and liabilities, characterized empirically following Lettau and Ludvigson [2004], is shown to be strikingly consistent with current account theory. While US consumption is virtually insulated from...

Persistent link: https://www.econbiz.de/10005791336

Fundamental Equilibrium Exchange Rates for the G7

Barrell, Ray; Wren-Lewis, Simon - C.E.P.R. Discussion Papers - 1989

The Fundamental Equilibrium Exchange Rate (FEER) is the real exchange rate which produces a current account that is exactly matched by equilibrium medium-term capital flows. This paper sets out a small model to calculate FEERs for the G7 from 1971 to 1988. This model's parameters are either...

Persistent link: https://www.econbiz.de/10005661741