We develop a optimal rules-based interpretation of the 'three pillars macroeconomic policy framework': a combination of a freely floating exchange rate, an explicit target for inflation, and a mechanism than ensures a stable government debt-GDP ratio around a specified long run. We show how such...

Intro -- Contents -- I. INTRODUCTION -- II. SOME BACKGROUND ON GLOBAL DEMOGRAPHIC CHANGE -- III. MODELING THE ECONOMIC IMPACT OF DEMOGRAPHIC CHANGE -- IV. HOW WILL DEMOGRAPHIC CHANGE AFFECT THE GLOBAL ECONOMY? -- V. SENSITIVITY ANALYSIS -- VI. CONCLUSIONS AND POLICY IMPLICATIONS -- Appendix: The...

After a long period of global price stability, in 2008 inflation increased sharply following unprecedented increases in the price of oil and other commodities, notably food. Although inflation remained lower and growth higher in inflation targeting countries than elsewhere, almost everywhere...

This paper investigates the role played by total factor productivity (TFP) in the tradable and nontradable sectors of the United States, the euro area, and Japan in the emergence and evolution of today's global trade imbalances. Simulation results based on a dynamic general equilibrium model of...