Narrow search
Showing 1 - 10 of 517
Cover Image
Methodological advances in the assessment of equilibrium exchange rates
Bussière, Matthieu; Ca'Zorzi, Michele; Chudík, Alexander - 2010
. The third issue discusses the uncertainty associated to the estimation of a reduced form relationship for the real … exchange rate, concluding that inference can be improved by panel estimation. The fourth and final issue addresses the presence … of strong and weak cross section dependence in panel estimation, suggesting which panel estimators one could use in this …
Persistent link: https://www.econbiz.de/10003970419
Cover Image
Current account benchmarks for central and eastern Europe : a desperate search?
Chudik, Alexander; Dieppe, Alistair - 2009
This paper examines two competing approaches for calculating current account benchmarks, i.e. the external sustainability approach á la Lane and Milesi-Ferretti (LM) versus the structural current accounts literature (SCA) based on panel econometric techniques. The aim is to gauge the medium...
Persistent link: https://www.econbiz.de/10003826590
Cover Image
Internal devaluation in currency unions : the role of trade costs and taxes
Petroulakis, Filippos - 2017
This paper studies export adjustment to negative shocks in currency unions. I consider the hitherto ignored role of trade costs and taxes in internal devaluations, which have been brought to the fore of international policy during the recent euro periphery crisis. Trade costs can limit the...
Persistent link: https://www.econbiz.de/10011639619
Cover Image
The asymmetric adjustment of global imbalances : myth or fact?
Dausà, Neus; Stracca, Livio - 2023
We revisit the so-called "secular international problem", whereby the adjustment of current account imbalances purportedly falls entirely on the shoulders of deficit countries. We introduce a stylised model to rationalise an asymmetric counter-cyclical policy reaction that is stronger for...
Persistent link: https://www.econbiz.de/10013552616
Cover Image
Current accounts dynamics in OECD and EU acceding countries
Bussière, Matthieu; Fratzscher, Marcel; Müller, Gernot J. - 2004
The paper extends the standard intertemporal model of the current account to include two important stylised facts: (1) the persistence of current account positions and (2) the relevance of the fiscal balance. Specifically, the paper derives a closed form solution for consumption in the presence...
Persistent link: https://www.econbiz.de/10009636534
Cover Image
International risk-sharing and the transmission of productivity shocks
Corsetti, Giancarlo; Dedola, Luca; Leduc, Sylvain - 2004
A central puzzle in international finance is that real exchange rates are volatile and, in stark contradiction to effcient risk-sharing, negatively correlated with cross-country consumption ratios. This paper shows that incomplete asset markets and a low price elasticity of tradables can account...
Persistent link: https://www.econbiz.de/10009636531
Cover Image
The corporate saving glut and the current account in Germany
Klug, Thorsten; Mayer, Eric; Schuler, Tobias - 2021
We investigate, in the case of Germany, the positive correlation between the cyclical components of the corporate saving glut in the non-financial corporate sector and the current account surplus from a capital account perspective. Employing sign restrictions, our findings suggest that mostly...
Persistent link: https://www.econbiz.de/10012607560
Cover Image
Reducing large net foreign liabilities
Fidora, Michael; Schmitz, Martin; Tcheng, Céline - 2017
In light of persistently large net foreign liability (NFL) positions in several euro area countries, we analyse 138 episodes of sizeable NFL reductions for a broad sample of advanced and emerging economies. We provide stylised facts on the channels through which NFLs were reduced and estimate...
Persistent link: https://www.econbiz.de/10011659341
Cover Image
Exchange rate misalignment and external imbalances : what is the optimal monetary policy response?
Corsetti, Giancarlo; Dedola, Luca; Leduc, Sylvain - 2023
How should monetary policy respond to excessive capital inflows that appreciate the currency and widen the external deficit? Using the workhorse two-country open-macro model, we derive a quadratic approximation of the utility-based global loss function in incomplete market economies, and solve...
Persistent link: https://www.econbiz.de/10014362654
Cover Image
Fiscal stimulus in times of high debt : reconsidering multipliers and twin deficits
Nickel, Christiane; Tudyka, Andreas - 2013
Persistent link: https://www.econbiz.de/10009765549