Showing 1 - 10 of 100
rate both matter for determining inflation and economic activity. …
Persistent link: https://www.econbiz.de/10012584354
A positive and normative evaluation of alternative monetary policy regimes is addressed in a simple two-country general equilibrium model. The behavior of the exchange rate, as well as of the other macroeconomic variables, depends crucially on the monetary regime chosen, though not necessarily...
Persistent link: https://www.econbiz.de/10014154658
In this paper we highlight a new channel through which dollar fluctuations can become a self-fulfilling pro-cyclical force. We call this mechanism "Imperial Circle" as it makes the dollar the dominant macroeconomic variable in the context of the current international monetary system. At the core...
Persistent link: https://www.econbiz.de/10013490639
This paper addresses the consumption-real exchange rate anomaly. International real business cycle models based on complete financial markets predict a unitary correlation between the real exchange rate and the ratio of home to foreign consumption when subjected to supply-side shocks. In the...
Persistent link: https://www.econbiz.de/10014064879
In this paper we highlight a new channel through which dollar fluctuations can become a self-fulfilling pro-cyclical force. We call this mechanism “Imperial Circle” as it makes the dollar the dominant macroeconomic variable in the context of the current international monetary system. At the...
Persistent link: https://www.econbiz.de/10014264141
output and for both domestic GDP and CPI inflation rates can replicate thecooperative allocation.[...] …
Persistent link: https://www.econbiz.de/10005871073
rate both matter for determining inflation and economic activity. …
Persistent link: https://www.econbiz.de/10012619548
Stochastic general equilibrium models of small open economies with occasionally binding financial frictions are capable of mimicking both the business cycles and the crisis events associated with the sudden stop in access to credit markets (Mendoza, 2010). This paper studies the inefficiencies...
Persistent link: https://www.econbiz.de/10010944501
In this paper we highlight a new channel through which dollar fluctuations can become a self-fulfilling pro-cyclical force. We call this mechanism "Imperial Circle" as it makes the dollar the dominant macroeconomic variable in the context of the current international monetary system. At the core...
Persistent link: https://www.econbiz.de/10014302767
After liberalizing international transactions of financial assets, many countries experiencelarge swings in asset prices, capital flows, and aggregate production. This paper studies howthe adjustment to capital account liberalization depends upon the degree of development of adomestic financial...
Persistent link: https://www.econbiz.de/10005870375