Showing 1 - 10 of 3,705
run on the currency if the central bank attempts to act as a lender of last resort. …
Persistent link: https://www.econbiz.de/10010397417
A country's financial system is internationally illiquid if its potential short-term obligations in foreign currency exceed the amount of foreign currency it can have access to in short notice. This condition may be necessary and sufficient for financial crises and/or exchange rate collapses...
Persistent link: https://www.econbiz.de/10010397536
sensitive to the global output gap. This can affect the trade-offs that central banks face when managing inflation. …
Persistent link: https://www.econbiz.de/10011657108
Is inflation (still) a global phenomenon? We study the international co-movement of inflation based on a dynamic factor model and in a sample spanning up to 56 countries during the 1960-2023 period. Over the entire period, a first global factor explains approximately 58% of the variation in...
Persistent link: https://www.econbiz.de/10015047278
the Panic of 1907. But why did the successful movement for creating a U.S. central bank follow the Panic of 1907 and not …
Persistent link: https://www.econbiz.de/10010397472
-Dybvig model. The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism … system implements the social optimum and eliminates runs, provided the exchange rate and central bank lending policies are …
Persistent link: https://www.econbiz.de/10010397526
Credit rationing is a common feature of most developing economies. In response to it, the governments of these countries often operate extensive credit programs and lend, either directly or indirectly, to the private sector. We analyze the macroeconomic consequences of a typical government...
Persistent link: https://www.econbiz.de/10010397530
A number of developing countries have adopted deficit-finance regimes involving multiple reserve requirements. One question the previous literature on this phenomenon has not addressed is whether multiple-reserves regimes can improve on regimes involving single-currency-reserve requirements if...
Persistent link: https://www.econbiz.de/10010397531
Arguably, eliminating suspensions of payments--periods when banks jointly refuse to convert their liabilities into outside money or other assets--was an important impetus for creating the Federal Reserve. Friedman and Schwartz suggest that a suspension in 1930 would have decreased the severity...
Persistent link: https://www.econbiz.de/10010397581
Cogley and Sargent provide us with a very useful tool for empirical macroeconomics: a Gibbs sampler for the estimation of VARs with drifting coefficients and volatilities. The authors apply the tool to a VAR with three variables-inflation, unemployment, and the nominal interest rate-and two...
Persistent link: https://www.econbiz.de/10010397377