Narrow search
Showing 1 - 10 of 454
Cover Image
Non-fundamental exchange rate volatility and welfare
Straub, Roland; Tchakarov, Ivan - 2004
We lay out an empirical and a theoretical model to analyze the effects of non-fundamental exchange rate volatility on … of the conditional exogenous exchange rate volatility on the conditional mean of the endogenous variables in our open … empirically. In the second part, we investigate the effect of non-fundamental exchange rate volatility in a stochastic open …
Persistent link: https://www.econbiz.de/10009636551
Cover Image
The credibility of the monetary policy "free lunch"
Yetman, James - 2003
level) volatility. This paper demonstrates the sensitivity of this argument. If even a small portion of agents use a rule … has preferences specified in terms of price level, rather than inflation, volatility. …
Persistent link: https://www.econbiz.de/10009635890
Cover Image
Indeterminacy of rational expectations equilibria in sequential financial markets
Donati, Paola - 2003
We provide a general characterization of the structure of rational expectations equilibria of any degree of revelation for pure exchange, sequential economies, with deffinitely many states of private information, an incomplete financial market and nominal assets. We estimate the dimension of the...
Persistent link: https://www.econbiz.de/10009635915
Cover Image
Maintaining price stability under free-floating
Detken, Carsten; Gaspar, Vítor - 2003
The behaviour of the exchange rate under a floating exchange rate regime for a small open economy with perfect capital mobility may appear like a managed float or even a firmer peg. We present a canonical new neo-classical synthesis open economy model where the central bank follows a strategy...
Persistent link: https://www.econbiz.de/10009635960
Cover Image
Exchange rates and fundamentals
Engel, Charles; West, Kenneth David - 2003
Standard economic models hold that exchange rates are influenced by fundamental variables such as relative money supplies, outputs, inflation rates and interest rates. Nonetheless, it has been well documented that such variables little help predict changes in floating exchange rates u0097 that...
Persistent link: https://www.econbiz.de/10009635953
Cover Image
Exchange rate risks and asset prices in a small open economy
Derviz, Alexis - 2004
The paper proposes a multi-factor international asset pricing model in which the exchange rate is allowed to be co-determined by a risk factor imperfectly correlated to other priced risks in the economy. The significance of this factor can be established as long as one is able to observe a proxy...
Persistent link: https://www.econbiz.de/10009636537
Cover Image
Consumer inflation expectations in Poland
£yziak, Tomasz - 2003
pursuing a monetary policy based on a strategy of direct inflation targeting. Macroeconomic theory indicates that the …
Persistent link: https://www.econbiz.de/10009635882
Cover Image
Import prices and pricing-to-market effects in the euro area
Warmedinger, Thomas - 2004
Pricing-to-market (PTM) behaviour implies that exporters adjust their prices to the prevailing prices in their export markets. For the importing country, PTM effects can be interpreted as a measure of the stability of domestic prices against foreign price and exchange rate developments. PTM...
Persistent link: https://www.econbiz.de/10009636522
Cover Image
Interest rate reaction functions and the Taylor rule in the euro area
Gerlach-Kristen, Petra - 2003
Traditional Taylor rules, which are estimated using a level specification linking the short-term interest rate to inflation and the output gap, are unstable when estimated on euro area data and forecast poorly out of sample. We present an alternative reaction function which takes the...
Persistent link: https://www.econbiz.de/10009635919
Cover Image
How does the ECB allot liquidity in its weekly main refinancing operations?
Ejerskov, Steen; Moss, Clara Martin; Stracca, Livio - 2003
This paper provides a simple weekly model of the regular supply of liquidity in the euro area, with a view to understanding the functioning of the euro area money market. The main result of the analysis is that liquidity has normally been provided by the ECB in a neutral and smooth manner, but...
Persistent link: https://www.econbiz.de/10009635957