shocks if it ties the hands of policy makers. But any decision to forsake exchange-rate flexibility might compromise shock … absorption in a world of real shocks and nominal stickiness. A simple model shows how a lack of flexibility can be discerned in …

Are financial crises a negative shock to demand or a negative shock to supply? This is a fundamental question for both … empirical time series record, and they divide sharply between each type of shock. Household deleveraging shocks are mainly … exchange rate depreciates. History shows that, on average, financial crises are very clearly a negative shock to demand …

Are financial crises a negative shock to demand or a negative shock to supply? This is a fundamental question for both … empirical time series record, and they divide sharply between each type of shock. Household deleveraging shocks are mainly … exchange rate depreciates. History shows that, on average, financial crises are very clearly a negative shock to demand …

shocks if it ties the hands of policy makers. But any decision to forsake exchange-rate flexibility might compromise shock … absorption in a world of real shocks and nominal stickiness. A simple model shows how a lack of flexibility can be discerned in …