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Obstfeld, Maurice - 1999

In this paper I focus on two specific hazard areas in the transition from Stage Two to Stage Three of European economic and monetary union (EMU), as well as on some key problems of Stage Three that EMU's monetary and fiscal structures appear ill-prepared to handle. The transitional hazards are...

Persistent link: https://www.econbiz.de/10012471509

Monetary and Fiscal Remedies for Deflation

Auerbach, Alan - 2004

Prevalent thinking about liquidity traps suggests that the perfect substitutability of money and bonds at a zero short … benefits and facilitate the use of powerful fiscal policy tools even in a liquidity trap. In this paper, we consider an … alternative approach that has been suggested for use in a liquidity trap, a scheduled increase in consumption tax rates. We find …

Persistent link: https://www.econbiz.de/10012468404

How to improve inflation targeting in Canada

Obstfeld, Maurice; Clinton, Kevin; Kamenik, Ondra; … - 2016

Routine publication of the forecast path for the policy interest rate (i.e. 'conventional forward guidance') would improve the transparency of monetary policy. It would also improve policy effectiveness through its influence on expectations, particularly when there is a risk of low inflation,...

Persistent link: https://www.econbiz.de/10011715420

Time of Troubles : The Yen and Japan's Economy, 1985-2008

Obstfeld, Maurice - 2009

during the period of Japan's bubble economy and subsequent stagnation. The yen experienced epic gyrations over that period … the price of oil. Since the mid-1990s, the yen's real exchange rate has generally followed a depreciating trend and Japan …

Persistent link: https://www.econbiz.de/10012463831

New Directions for Stochastic Open Economy Models

Obstfeld, Maurice - 1999

The paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal wages. Explicit solution of the wage-setting problem under uncertainty allows one to analyze the effects of the monetary regime on welfare, expected output, and the expected terms of trade....

Persistent link: https://www.econbiz.de/10012471471

Open-Economy Macroeconomics, Developments in Theory and Policy

Obstfeld, Maurice - 1999

disappears in high-inflation conditions) can be explained by sticky-price theories or by models of asset-market liquidity effects …. But plausible liquidity models have difficulty generating enough persistence (in output and real exchange rates, in …

Persistent link: https://www.econbiz.de/10012471642

Exchange Rates, Inflation and the Sterilization Problem : Germany, 1975-1981

Obstfeld, Maurice - 1982

When the goals of internal and external macroeconomic equilibrium are in conflict, sterilized intervention in the foreign exchange market may provide an independent policy instrument through which the central bank can resolve its dilemma in the short run. This paper is concerned with the West...

Persistent link: https://www.econbiz.de/10012478142

International Interest-Rate and Price-Level Linkages Under Flexible Exchange Rates : A Review of Recent Evidence

Cumby, Robert E. - 1982

Persistent link: https://www.econbiz.de/10012478187

Can We Sterilize? Theory and Evidence

Obstfeld, Maurice - 1982

This paper is a highly selective review of our knowledge about the scope for sterilized intervention in foreign exchange markets under alternative exchange-rate regimes. Section I demonstrates the potential importance of simultaneous-equations bias in single-equation econometric studies of the...

Persistent link: https://www.econbiz.de/10012478278

Imperfect Asset Substitutability and Monetary Policy under Fixed Exchange Rates

Obstfeld, Maurice - 1980

This paper presents a long-run model of the open economy in a world of fixed exchange rates and imperfect substitutability between bonds denominated in different currencies. The model explicitly accounts for the wealth flow accompanying current-account imbalance and for the flow of interest...

Persistent link: https://www.econbiz.de/10012478651