Showing 1 - 10 of 185
The uniqueness of bounded local equilibria under interest rate rules is analyzed in a model with sticky information à la Mankiw and Reis (2002). The main results are tighter bounds on monetary policy than in sticky-price models, irrelevance ofthe degree of output-gap targeting for determinacy,...
Persistent link: https://www.econbiz.de/10005860482
The establishment of European monetary union (EMU) was widely expected to causeprice convergence among member states. In an investigation of this claim, the presentstudy avoids problems of comparability and representativeness by using an extremelydetailed and comprehensive scanner database on...
Persistent link: https://www.econbiz.de/10005866233
The aim of this paper is to provide new empirical evidence on the impact of international financialintegration on the long-run Real Exchange Rate (RER) in 39 developing countries belonging to threedifferent geographical regions (Latin America, Asia and MENA). It covers the period 1979-2004,...
Persistent link: https://www.econbiz.de/10009360505
Recent theoretical work shows that changes in the volatility of inflation and/or unem-ployment affect equilibrium in … propositionthat the volatility of unemployment helps explain inflation outcomes suffers from a spu-rious regression problem. Once this … problem is controlled for, the evidence suggeststhat the volatility of unemployment does not help explain inflation outcomes …
Persistent link: https://www.econbiz.de/10009360871
Can pegging reduce real as well as nominal, and multilateral as well as bilateralexchange rate volatility? We investigate this issue using monthly data for 139countries from January 1990 to June 2006...
Persistent link: https://www.econbiz.de/10005868570
. Volatility decreases with openness tointernational trade and per capita GDP, and increases with inflation, particularlyunder a …
Persistent link: https://www.econbiz.de/10005868573
In currency crises, unlike in orderly devaluations, the financial markets dominateevents. It is shown that currency collapses (crises followed by depreciations) have hada much greater adverse impact in emerging markets (defined as relatively highincomedeveloping countries exposed to...
Persistent link: https://www.econbiz.de/10005868940
The standard model of currency crises is amended to distinguish betweenunemployment aversion and financial fragility. Fragility is assumed to affect theauthorities’ sensitivity to a combination of high real interest rates and unemployment.An increase in fragility expands the region of...
Persistent link: https://www.econbiz.de/10005869186
" – although they generate price inertia, they cannot account for thestylised fact of inflation persistence. It is thus commonly … asserted that, in the context of thenew Phillips curve (NPC), inflation is a jump variable... …
Persistent link: https://www.econbiz.de/10005863257
We examine the global dimension of inflation in 24 OECD countries between 1980 and 2007in a traditional Phillips curve … affect inflation through (the common part of) domestic demand and supplyconditions. Our most important result is that the … common component of changes in unit laborcosts notably affects inflation. We also find evidence that movements in import …
Persistent link: https://www.econbiz.de/10005866174