trade pattern, when countries differ with respect to their outputs or their attitudes towards risk. When world asset markets …

finding is that the behavior of the domestic variables (for instance, output, inflation) is quite sensitive to the monetary … less so. Among different policy rules, domestic inflation targeting achieves the best stabilization outcome of aggregate … of consumer price inflation performs similarly well …

The paper argues that the reason real world fixed exchange rate regimes usually have finite bands instead of completely …

expectations of the time-paths of future short interest rates, monetary policy, inflation rates and currency depreciation rates …