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The Explanatory Power of Monetary Policy Rules
Taylor, John B. - 2007
rates, and the shift in the response of the term structure of interest rates to inflation and output. Although the theory …This paper shows that the theory of monetary policy rules is able to explain, predict, and help understand a variety of …
Persistent link: https://www.econbiz.de/10012775473
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Does Competition between Currencies Lead to Price Level and Exchange Rate Stability?
Woodford, Michael - 2007
Over the past century, the world economy has passed through a succession of phases characterized by very different levels of international capital flows. This paper asks what accounts for these dramatic shifts in the extent of capital movements across national borders, three categories of...
Persistent link: https://www.econbiz.de/10012776702
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Why are Rates of Inflation so Low after Large Devaluations?
Burstein, Ariel T.; Eichenbaum, Martin; Rebelo, Sergio T. - 2021
This paper studies the behavior of inflation after nine large post-1990 contractionary devaluations. A salient feature … of the data is that inflation is low relative to the rate of devaluation. We argue that distribution costs and …
Persistent link: https://www.econbiz.de/10013226060
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Trade in Nominal Assets : Monetary Policy, and Price Level and Exchange Rate Risk
Svensson, Lars E. O. - 2021
In a previous paper, "Trade in Risky Assets," I have analyzed the pattern of international trade in risky real assets between barter economies, relying on the Law of Comparative Advantage and using autarky asset price differences to predict the pattern of asset trade. In this paper the analysis...
Persistent link: https://www.econbiz.de/10013248119
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Fiscal Deficits, Exchange Rate Crises and Inflation
van Wijnbergen, Sweder - 2021
reforms may cause jumps in inflation and the exchange rate through their impact on the government budget. In order to achieve … a sustainable reduction in inflation an exchange rate freeze or crawling peg is shown to require restrictions not only …-collapse inflation will exceed the rate prevailing before the freeze started …
Persistent link: https://www.econbiz.de/10013246289
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Simple Variance Swaps
Martin, Ian - 2011
The large asset price jumps that took place during 2008 and 2009 disrupted volatility derivatives markets and caused the single-name variance swap market to dry up completely. This paper defines and analyzes a simple variance swap, a relative of the variance swap that in several respects has...
Persistent link: https://www.econbiz.de/10013128275
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Exchange Rates and Local Labor Markets
Goldberg, Linda S. - 2010
We document the consequences of real exchange rate movements for the employment, hours, and hourly earnings of workers in manufacturing industries across individual states. Exchange rates have statistically significant wage and employment implications in these local labor markets. The importance...
Persistent link: https://www.econbiz.de/10013137198
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The Forward Premium Puzzle in a Two-Country World
Martin, Ian - 2011
I explore the behavior of asset prices and the exchange rate in a two-country world. When the large country has bad news, the relative price of the small country's output declines. As a result, the small country's bonds are risky, and uncovered interest parity fails, with positive excess returns...
Persistent link: https://www.econbiz.de/10013118842
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Consumption Risk-Sharing and the Real Exchange Rate : Why Does the Nominal Exchange Rate Make Such a Difference?
Devereux, Michael B. - 2011
A basic prediction of effcient risk-sharing is that relative consumption growth rates across countries or regions should be positively related to real exchange rate growth rates across the same areas. We investigate this hypothesis, employing a newly constructed multi-country and multi-regional...
Persistent link: https://www.econbiz.de/10013121595
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Risk, Monetary Policy and the Exchange Rate
Benigno, Gianluca - 2011
general-equilibrium theory of exchange rate determination based on the interaction between monetary policy and time …
Persistent link: https://www.econbiz.de/10013123697