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Guimarães, Bernardo; Sheedy, Kevin D. - C.E.P.R. Discussion Papers - 2008

A striking fact about prices is the prevalence of "sales": large temporary price cuts followed by a return exactly to the former price. This paper builds a macroeconomic model with a rationale for sales based on firms facing consumers with different price sensitivities. Even if firms can vary...

Persistent link: https://www.econbiz.de/10005666506

Understanding the Link between Money Growth and Inflation in the Euro Area

Assenmacher-Wesche, Katrin; Gerlach, Stefan - C.E.P.R. Discussion Papers - 2006

Announced in the autumn of 1998, the monetary policy strategy of the European Central Bank (ECB) quickly became controversial, arguably because the ECB provided neither an explicit representation of the inflation process nor an explanation for why it necessitated the adoption of a two-pillar...

Persistent link: https://www.econbiz.de/10005666593

Financial Crises: Explanations, Types, and Implications

Claessens, Stijn; Kose, Ayhan - C.E.P.R. Discussion Papers - 2013

This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main … factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp … markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main …

Persistent link: https://www.econbiz.de/10011084455

Understanding Financial Crises: Causes, Consequences, and Policy Responses

Claessens, Stijn; Kose, Ayhan; Laeven, Luc; Valencia, Fabian - C.E.P.R. Discussion Papers - 2013

related to financial crises. This paper presents a summary of a forthcoming book, Financial Crises: Causes, Consequences, and … range of crises, including banking, balance-of-payments, and sovereign debt crises. It reviews the typical patterns prior to … crises, considers lessons on their antecedents, and analyzes their evolution and aftermath. It also provides valuable policy …

Persistent link: https://www.econbiz.de/10011083226

Exchange Rate Flexibility under the Zero Lower Bound

Cook, David; Devereux, Michael B - C.E.P.R. Discussion Papers - 2014

An independent currency and a flexible exchange rate generally helps a country in adjusting to macroeconomic shocks. But recently in many countries, interest rates have been pushed down close to the lower bound, limiting the ability of policy-makers to accommodate shocks, even in countries with...

Persistent link: https://www.econbiz.de/10011083336

Is the Euro Sustainable?

Wickens, Michael R. - C.E.P.R. Discussion Papers - 2007

It is widely recognised that the "one-size-fits-all" monetary policy of the euro-zone is a potential problem. How much of a problem has not been much investigated. It is argued in this paper that it may result in the euro not being sustainable in the longer term without drastic changes to other...

Persistent link: https://www.econbiz.de/10005789110

The Macroeconomic Costs and Benefits of the EMU and other Monetary Unions: An Overview of Recent Research

Beetsma, Roel; Giuliodori, Massimo - C.E.P.R. Discussion Papers - 2009

This article provides an overview of recent research into the macroeconomic costs and benefits of monetary unification. We are primarily interested in Europe’s monetary union. Given that unification entails the loss of a policy instrument its potential benefits have to be found elsewhere....

Persistent link: https://www.econbiz.de/10008477181

Fiscal Policy, Labour Unions and Monetary Institutions: Their Long Run Impact on Unemployment, Inflation and Welfare

Cukierman, Alex; Dalmazzo, Alberto - C.E.P.R. Discussion Papers - 2007

OBJECTIVES AND MOTIVATION: This paper considers the impact of interactions between fiscal policy and monetary institutions in the presence of unionized labour markets on economic outcomes and welfare in the long run. Two main classes of questions are investigated. First, what is the impact of...

Persistent link: https://www.econbiz.de/10005124139

Fiscal-Monetary Policy Interactions in the Presence of Unionized Labour Markets

Cukierman, Alex; Dalmazzo, Alberto - C.E.P.R. Discussion Papers - 2005

This paper develops a framework for studying the interactions between labour unions, fiscal policy, monetary policy and monopolistically competitive firms. The framework is used to investigate the effects of labour taxes, the replacement ratio, labour market institutions and monetary...

Persistent link: https://www.econbiz.de/10005124224

Political Economics and Macroeconomic Policy

Persson, Torsten; Tabellini, Guido - C.E.P.R. Discussion Papers - 1997

This paper surveys the recent literature on the theory of macroeconomic policy. We study the effect of various incentive constraints on the policy-making process, such as lack of credibility, political opportunism, political ideology, and divided government. The survey is organized in three...

Persistent link: https://www.econbiz.de/10005498016