This study addresses the potential trade-off between inflation and exchange rate targeting in former transition countries, which now may be labeled emerging market economies and which prepare for entry into the Economic and Monetary Union (EMU). Among this group of countries, some implemented...

Mexico’s financial debacle and its impact on other emerging markets (the Tequila effect)has raised many fundamental questions. Mexico achieved fiscal balance in 1993, undertookseveral fundamental market-oriented reforms, signed a free trade agreement with a very largemarket (the NAFTA), became...

Intertemporal general-equilibrium models with Keynesian features such as imperfect competition and imperfectly flexible prices which give rise to a (at least) short-run non-neutrality of monetary policy have become the workhorse model for monetary macroeconomics. This thesis now makes four...

This thesis investigates the role of exchange rate in a small open economy policy framework. Focusing the analysis on the crisis-hit East-Asian countries, the main objective of this thesis is to investigate the necessity of the monetary authority to concern about the exchange rate stability by...

In this paper, we show that a simple model of smoothly state-dependent pricing generates a distribution of price adjustments similar to that observed in microeconomic data, both for low and high inflation. Our setup is based on one fundamental assumption: price adjustment is more likely when it...

This paper analyzes the effects of monetary shocks in a DSGE model that allows for a general form of smoothly state-dependent pricing by firms. As in Dotsey, King, and Wolman (1999) and Caballero and Engel (2007), our setup is based on one fundamental property: firms are more likely to adjust...