Showing 1 - 5 of 5
Recent macroeconomic experience has drawn attention to the importance of interdependence among countries through financial markets and institutions, independently of traditional trade linkages. This paper develops a model of the international transmission of shocks due to interdependent...
Persistent link: https://www.econbiz.de/10013139756
In this paper we examine how monetary policy should respond to nominal exchange rates in a New Keynesian open economy model that allows for a non-trivial role for sterilised intervention. The paper develops the argument against the backdrop of the evolving policy-making environment of Asian...
Persistent link: https://www.econbiz.de/10013051760
International financial integration helps to diversify risk but also may increase the trans- mission of crises across countries. We provide a quantitative analysis of this trade-off in a two-country general equilibrium model with endogenous portfolio choice and collateral con- straints....
Persistent link: https://www.econbiz.de/10013046603
This paper explores the implications of the European single currency within a simple sticky price intertemporal model. The main issue we focus on is how the euro may alter the responsiveness of consumer prices to exchange rate changes. Our central conjectures is that the acceptance of the euro...
Persistent link: https://www.econbiz.de/10013243930
We model sudden stops in a small open economy as rare discrete events precipitated by increases in the world risk … high, and one with a collapse in external debt and consumption. Private agents delever following an increase in the world …, even a small increase in the world interest rate can eliminate the high debt equilibrium and the economy experiences a …
Persistent link: https://www.econbiz.de/10014090776