This paper is an empirical investigation into the question of whether increased independence affects central bank behavior, in particular when monetary policy is already in an inflation targeting regime. We take advantage of the unique experience in that sense of the United Kingdom, where the...

In a baseline stochastic new open-economy macroeconomics (NOEM) model which parallels alternative invoicing conventions, namely consumer's currency pricing (CCP) vs. producer's currency pricing (PCP), we revisit the question whether the exchange-rate regime matters for trade. We show...

Scientists and epistemologists generally agree that a scientific law must be (a) relatively simple and (b) not contradicted by the available evidence. In this paper we propose and test one such law pertaining to international economics, the triple-parity law. It integrates three well-known...

This paper recovers empirically and evaluates the feedback and stance of monetary policy in the United Kingdom throughout the inflation targeting period, implemented since October 1992. Its principal contribution is in comparing two subsamples, before the Bank of England was granted operational...

This paper extends stochastic research in new open-economy macroeconomics (NOEM) to study the effects of the exchange-rate regime on international trade in a more realistic, yet rigorous, analytical set-up. We essentially incorporate "iceberg" costs, inducing home bias, into a unified framework...

The paper compares exchange rate pass-through on aggregate prices in the US, Germany and Japan across a number of dimensions. Building on the empirical approaches in the recent literature, our contribution is to perform a thorough sensitivity analysis of alternative pass-through estimates. We...