The notion that flexible exchange rates insulate a country from foreign shocks is well grounded in theory, from the … alters the spillovers: it does not-flexible exchange rates fail to provide insulation against euro area shocks. This result … the workhorse open-economy model can account for the lack of insulation under a float, assuming that central banks respond …

find that a contractionary US monetary policy shock leads to a persistent fall in international output, a drop in global … negative shock to foreign real GDP growth. …

monetary policy shocks. This result is puzzling. Economic theory suggests that the overshooting should occur immediately after … the shock, not with a delay. This paper uses a ?new open economy macroeconomics? model with pricing-to-market to analyze …

shock, is negative for expansionary depreciations and positive for contractionary ones. For this type of shock, interest … is strong or mild. Interest rates are predicted to also rise in response to an adverse net export shock in contractionary …

information with signal extraction, the realisation of a relatively less frequent shock leads the central bank to behave as if a …