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Regional Risksharing and Redistribution in the German Federation

Hepp, Ralf; von Hagen, Jürgen - C.E.P.R. Discussion Papers - 2001

We provide empirical estimates of the risksharing and redistributive properties of fiscal equalization among the states of the German federation. Fiscal equalization serves as a mechanism to insure state budgets against asymmetric revenue shocks, but provides almost no insurance against regional...

Persistent link: https://www.econbiz.de/10005791883

Are Capital Controls in the Foreign Exchange Market Effective?

Straetmans, Stefan; Versteeg, Roald; Wolff, Christian C - C.E.P.R. Discussion Papers - 2008

One of the reasons for governments to use capital controls is to obtain some degree of monetary independence. This paper investigates the link between capital controls and interest differentials/ forward premia. This to test whether they can indeed give governments the power to drive exchange...

Persistent link: https://www.econbiz.de/10005792007

Monetary Policy with Judgement: Forecast Targeting

Svensson, Lars E O - C.E.P.R. Discussion Papers - 2005

‘Forecast targeting’, forward-looking monetary policy that uses central-bank judgment to construct optimal policy …, one forward looking and one backward looking. A complicated infinite-horizon central bank projection model of the economy … the monetary-policy decision process, including the central bank’s judgment. It cannot be summarized as a simple reaction …

Persistent link: https://www.econbiz.de/10005792257

Joining the European Monetary Union - Comparing First and Second Generation Open Economy Models

Le, Vo Phuong Mai; Minford, Patrick - C.E.P.R. Discussion Papers - 2006

We log-linearise the Dellas and Tavlas (DT) model of monetary union and solve it analytically. We find that the intuition of optimal currency analysis of DT's second generation open economy model is essentially the same as that of first generation models. Monetary union results in no welfare...

Persistent link: https://www.econbiz.de/10005792341

Price-level Targeting versus Inflation Targeting: A Free Lunch?

Svensson, Lars E O - C.E.P.R. Discussion Papers - 1996

-term price variability. Society may be better off assigning a price-level target to the central bank even if its preferences …

Persistent link: https://www.econbiz.de/10005792372

Patching up the Pact: some Suggestions for Enhancing Fiscal Sustainability and Macroeconomic Stability in an Enlarged European Union

Buiter, Willem H.; Grafe, Clemens - C.E.P.R. Discussion Papers - 2002

The paper considers the implications for the EU accession candidates of Central and Eastern Europe of the fiscal-financial constraints imposed by the Stability and Growth Pact and the Maastricht Treaty. Our findings apply also to those current EU members whose initial conditions (e.g....

Persistent link: https://www.econbiz.de/10005792378

Testing the Monetary Policy Rule in the US: a Reconsideration of the Fed’s Behaviour

Minford, Patrick; Ou, Zhirong - C.E.P.R. Discussion Papers - 2009

We calibrate a standard New Keynesian model with three alternative representations of monetary policy- an optimal timeless rule, a Taylor rule and another with interest rate smoothing- with the aim of testing which if any can match the data according to the method of indirect inference. We find...

Persistent link: https://www.econbiz.de/10008491715

Interpreting the Unconventional U.S. Monetary Policy of 2007-09

Reis, Ricardo - C.E.P.R. Discussion Papers - 2010

This paper reviews the unconventional U.S. monetary policy responses to the financial and real crises of 2007-09, divided into three groups: interest rate policy, quantitative policy, and credit policy. To interpret interest rate policy, it compares the Federal Reserve’s actions with the...

Persistent link: https://www.econbiz.de/10008468632

Optimal Target Zones: How an Exchange Rate Mechanism Can Improve Upon Discretion

Miller, Marcus; Zhang, Lei - C.E.P.R. Discussion Papers - 1994

Using Krugman's (1991) target zone model, we find an explicit, sub-game perfect solution for a central bank wishing to …

Persistent link: https://www.econbiz.de/10005123571

Do Capital Market Imperfections Exacerbate Output Fluctuations?

Bacchetta, Philippe; Caminal, Ramon - C.E.P.R. Discussion Papers - 1996

We develop a dynamic general equilibrium macroeconomic model where a proportion of firms are credit constrained due to asymmetric information. In general, a macroeconomic shock has additional effects created by a reallocation of funds between credit-constrained and unconstrained firms. We show...

Persistent link: https://www.econbiz.de/10005123585