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"We explore the implications of current account adjustment for monetary policy within a simple two-country DSGE model. Our framework nests Obstfeld and Rogoff's (2005) static model of exchange rate responsiveness to current account reversals. It extends this approach by endogenizing the dynamic...
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discusses two emerging market countries which illustrate what it takes to make inflation targeting work well, Chile and Brazil …
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the probability of default, in a high-debt high-risk-aversion economy such as Brazil during that period. It then estimates … the model, using Brazilian data. It concludes that, in 2002, the level and the composition of public debt in Brazil, and …
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