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Consumption and real exchange rates in professional forecasts
Devereux, Michael B.; Smith, Gregor W; Yetman, James - Bank für Internationalen Zahlungsausgleich <Basel> - 2009
Standard models of international risk sharing with complete asset markets predict a positive association between … - the consumption/real-exchange-rate anomaly or Backus-Smith puzzle - has prompted research on risk-sharing indicators with …
Persistent link: https://www.econbiz.de/10005871071
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Risk Sharing and the Theory of Optimal Currency Areas : A Re-Examination of Mundell 1973
Ching, Stephen - 2007
emerging market economies, based on Mundell's hypothesis. An important pre-requisite for the risk-sharing benefits of a single … markets supports this assumption. In this case, we show that a single currency area may support risk sharing that could not be … achieved under floating exchange rates. Based on a simple quantitative evaluation of our model, we show that the implied risk …
Persistent link: https://www.econbiz.de/10012729262
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Monopolistic Competition, Increasing Returns, and the Effects of Government Spending
Devereux, Michael B.; Head, Allen C.; Lapham, Beverly J. - 1998
The dynamic effects of government spending are considered in a general equilibrium model with monopolistic competition and increasing returns. In the economy, changes in the level of government spending endogenously raise total factor productivity, even though the spending itself is entirely...
Persistent link: https://www.econbiz.de/10014110684
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What Determines European Real Exchange Rates?
Devereux, Michael B.; Berka, Martin - National Bureau of Economic Research (NBER) - 2010
We study a newly constructed panel data set of relative prices of a large number of consumer goods among 31 European countries. We find that there is a substantial and non-diminishing deviation from PPP at all levels of aggregation, even among eurozone members. However, real exchange rates are...
Persistent link: https://www.econbiz.de/10008614650
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Sharing the Burden: Monetary and Fiscal Responses to a World Liquidity Trap
Cook, David; Devereux, Michael B. - National Bureau of Economic Research (NBER) - 2011
With integrated trade and financial markets, a collapse in aggregate demand in a large country can cause 'natural real interest rates' to fall below zero in all countries, giving rise to a global 'liquidity trap'. This paper explores the policy choices that maximize the joint welfare of all...
Persistent link: https://www.econbiz.de/10009147539
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Real exchange rates and sectoral productivity in the Eurozone
Devereux, Michael B.; Engel, Charles; Berka, Martin - Federal Reserve Bank of Dallas - 2014
We investigate the link between real exchange rates and sectoral total factor productivity measures for countries in the Eurozone. Real exchange rate patterns closely accord with an amended Balassa-Samuelson interpretation, both in cross-section and time series. We construct a sticky price...
Persistent link: https://www.econbiz.de/10011084972
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Globalisation, Pass-through and the Optimal Policy Response to Exchange Rates
Devereux, Michael B.; Yetman, James - National Bureau of Economic Research (NBER) - 2014
In this paper we examine how monetary policy should respond to nominal exchange rates in a New Keynesian open economy model that allows for a non-trivial role for sterilised intervention. The paper develops the argument against the backdrop of the evolving policy-making environment of Asian...
Persistent link: https://www.econbiz.de/10011085489
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Nominal Stability and Financial Globalization
Devereux, Michael B.; Senay, Ozge; Sutherland, Alan - National Bureau of Economic Research (NBER) - 2012
Over the one and a half decades prior to the global financial crisis, advanced economies experienced a large growth in gross external portfolio positions. This phenomenon has been described as Financial Globalization. Over roughly the same time frame, most of these countries also saw a...
Persistent link: https://www.econbiz.de/10009652808
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Real Exchange Rates and Sectoral Productivity in the Eurozone
Berka, Martin; Devereux, Michael B.; Engel, Charles - Crawford School of Public Policy, Australian National … - 2014
We investigate the link between real exchange rates and sectoral total factor productivity measures for countries in the Eurozone. Real exchange rate patterns closely accord with an amended Balassa-Samuelson interpretation, both in cross-section and time series. We construct a sticky price...
Persistent link: https://www.econbiz.de/10010939113
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Real Exchange Rates and Sectoral Productivity in the Eurozone
Devereux, Michael B.; Engel, Charles; Berka, Martin - National Bureau of Economic Research (NBER) - 2014
We investigate the link between real exchange rates and sectoral total factor productivity measures for countries in the Eurozone. Real exchange rate patterns closely accord with an amended Balassa-Samuelson interpretation, both in cross-section and time series. We construct a sticky price...
Persistent link: https://www.econbiz.de/10010951188