Showing 1 - 10 of 21
This paper extends and modifies the Keynesian critique of inflation targetingwith reference to stabilisation policy in emerging market economies. The IMF‘basic monetary programming framework’ for developing countries usesgovernment borrowing and the exchange rate as policy instruments in...
Persistent link: https://www.econbiz.de/10005870230
This paper explores implications of nominal rigidity characterized by a non-constanthazard function for aggregate dynamics. I derive the NKPC under an arbitrary hazardfunction and parameterize it with the Weibull duration model. The resulting Phillips curveinvolves lagged inflation and lagged...
Persistent link: https://www.econbiz.de/10008939774
Building a model with three imperfect markets – goods, labor and credit – representing aproduct’s life-cycle, we find that goods market frictions drastically change the qualitative andquantitative dynamics of labor market variables. The calibrated model leads to a significantreduction in...
Persistent link: https://www.econbiz.de/10009353913
Unemployment may depend on equilibrium in other markets than the labor markets. Thispaper adresses this old idea by introducing search frictions on several markets: in a model ofcredit and labor market imperfections as in Wasmer and Weil (2004), I further introducesearch on the goods market. The...
Persistent link: https://www.econbiz.de/10009360514
This paper extends Galí and Gertler’s (1999) new hybrid KeynesianPhillips curve to the open economy context. We hypothesise that pricing decisionsdepend on both labour costs and intermediate imported input prices. The results forHong Kong are consistent with the theory if import prices are...
Persistent link: https://www.econbiz.de/10005858316
Persistent link: https://www.econbiz.de/10005866230
In this paper, I present a theory of dynamic economic growth, business cycles, and asset pricing that integrates (1) Marx's idea (and emphasized by Klein) of a two-class heterogeneity of the ownership structure of physical capital and human capital in a capitalist society, (2) Keynes' idea of...
Persistent link: https://www.econbiz.de/10005846603
Using a unique longitudinal data set on all manufacturing firms in Slovenia from 1994-2001, this study analyzes how firm efficiency changed in response to changing competitive pressures associated with the transition to market. Results show that the period was one of atypically rapid growth of...
Persistent link: https://www.econbiz.de/10009418927
How important is financial development for economic development? A costly state verification modelof financial intermediation is presented to address this question. The model is calibrated to match factsabout the U.S. economy, such as intermediation spreads and the firm-size distribution for the...
Persistent link: https://www.econbiz.de/10005870315
I argue that progress in understanding economic development (as in other branches of economics)must come from the investigation of mechanisms; the associated empirical analysis can usefully employa wide range of experimental and non-experimental methods. I discuss three different areas of...
Persistent link: https://www.econbiz.de/10005870316