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The Impact of Regional and Sectoral Productivity Changes on the U.S. Economy
Caliendo, Lorenzo; Parro, Fernando; Rossi-Hansberg, Esteban - C.E.P.R. Discussion Papers - 2014
environment that captures the effects of interregional and intersectoral trade in propagating disaggregated productivity changes … pairwise interregional trade across all 50 U.S. states, 26 traded and non-traded industries, labor as a mobile factor, and … matches the U.S. input-output matrix. Using data on trade flows by industry between states, as well as other regional and …
Persistent link: https://www.econbiz.de/10011083376
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Target Zones and International Policy Coordination: The Contrast Between the Necessary and Sufficient Conditions for Success
Hughes Hallett, Andrew - C.E.P.R. Discussion Papers - 1990
This paper distinguishes between some obvious necessary and sufficient conditions for adopting the target zone proposal as a means of improving macroeconomic performance. The necessary conditions may be satisfied fairly easily, but it is a good deal more difficult to design a targeting system...
Persistent link: https://www.econbiz.de/10005666968
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The Foreign Exchange Risk Premium in a Target Zone with Devaluation Risk
Svensson, Lars E O - C.E.P.R. Discussion Papers - 1991
The foreign exchange risk premium in an exchange rate target-zone regime with devaluation/realignment risks is derived. In contrast to previous literature, the exchange rate's heteroscedasticity within the band, as well as a separate devaluation/realignment risk, is taken into account. The risk...
Persistent link: https://www.econbiz.de/10005788869
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Sustainable Intervention Policies and Exchange Rate Dynamics
Bertola, Giuseppe; Caballero, Ricardo - C.E.P.R. Discussion Papers - 1991
Recently developed models of exchange rate dynamics emphasize the expectational effects of infrequent intervention. This paper proposes a stylized probabilistic framework in which such effects can be studied along with realistic concerns about the sustainability of the intervention policy. In...
Persistent link: https://www.econbiz.de/10005789174
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The Simplest Test of Target Zone Credibility
Svensson, Lars E O - C.E.P.R. Discussion Papers - 1991
Under the assumption of no arbitrage, exchange rate target-zone credibility is tested by whether domestic interest rates fall within `rate-of-return bands' between the maximum and minimum home-currency rate of return on a foreign investment in the absence of a devaluation. Under the assumption...
Persistent link: https://www.econbiz.de/10005791263
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Target Zone Models with Price Inertia: Some Testable Implications
Sutherland, Alan - C.E.P.R. Discussion Papers - 1992
Many recent papers suggest that the basic flex-price target zone model does not perform well empirically. This paper derives some of the testable implications of a sticky-price target zone model in order to determine whether the assumption of perfect price flexibility explains the empirical...
Persistent link: https://www.econbiz.de/10005791517
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Stochastic Devaluation Risk and the Empirical Fit of Target Zone Models
Bertola, Giuseppe; Svensson, Lars E O - C.E.P.R. Discussion Papers - 1991
In our model, an exchange rate fluctuates between given boundaries for random lengths of time and jumps discretely when devaluations occur. We provide explicit solutions for the stochastic processes followed by the exchange rate and by the expected rate of depreciation when the likelihood and...
Persistent link: https://www.econbiz.de/10005792012
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Why Have a Target Zone?
Krugman, Paul; Miller, Marcus - C.E.P.R. Discussion Papers - 1992
The desire to avoid speculative runs on currencies appears to be one of the main reasons leading policy-makers to impose currency bands, but the standard analysis of target zones rules out any speculative inefficiencies by assumption. As an alternative we first present simple models of excess...
Persistent link: https://www.econbiz.de/10005792196
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The European Monetary System and the Theory of Target Zones
Honohan, Patrick - C.E.P.R. Discussion Papers - 1993
In credible target zone regimes, exchange rates should, according to Krugman's 1991 theory, spend a disproportionate amount of time near the edges of the fluctuation band. The major application of this theory has been to the European Monetary System (EMS), with several authors reporting that...
Persistent link: https://www.econbiz.de/10005497726
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On Optimal World Stabilization and the Target Zones Proposal
Alogoskoufis, George - C.E.P.R. Discussion Papers - 1987
In this paper I examine issues of optimal stabilization in two types of world economy, a competitive one where all countries are small, and one where there is a Stackelberg leader. The focus is on the 1985 target zones proposal of Williamson, according to which there should be a periodic fixing...
Persistent link: https://www.econbiz.de/10005281296