The dynamic effects of ECB announcements, disentangled into pure monetary policy and central bank information shocks …-frequency data. Contractionary monetary policy shocks result in a sizable appreciation of the nominal effective and bilateral EUR … bank information shocks exhibit strong heterogeneities across currency pairs. This disparity can be rationalized by an …

appreciates in response to an asymmetric negative demand shock at the zero lower bound (ZLB) and exacerbates the adverse … expectations consistent with survey expectations using imperfect information, we find that exchange rates can absorb demand shocks … at the ZLB. In sharp contrast to the full information model: (i) A negative demand shock concentrated in the home country …

average higher volatility of output growth (1) accumulated higher external assets in the long-run and (2) experienced more …

shocks significantly affect exchange rates and that this impact persists for months. We show for Japan and the US that …

variations in pass through over time. For example, exchange rate movements caused by monetary policy shocks consistently …. Previous literature has highlighted the role of an economy's "structure" - such as its inflation volatility, inflation rate … in pass-through across countries, but also over time. The "shocks" leading to exchange rate movements can also explain …

This paper studies Ramsey-optimal monetary and fiscal policy in a New Keynesian 2-country open economy framework, which … is used to assess how far fiscal policy can substitute for the role of nominal exchange rates within a monetary union … observed as an optimal policy in a monetary union: if a nominal devaluation of the domestic currency were optimal under …