Showing 1 - 10 of 13
Persistent link: https://www.econbiz.de/10005096567
A model of Dornbusch is adapted to analyze the consequences for output and competitiveness of certain aspects of the U.K. government's medium term financial strategy and some other policy actions. This includes the announcement of a sequence of reductions in the target rate of monetary growth,...
Persistent link: https://www.econbiz.de/10005061594
When the risk premium in the US stock market fell far below its historic level, Shiller (2000) attributed this to a bubble driven by psychological factors. As an alternative explanation, we point out that the observed risk premium may be reduced by one-sided intervention policy on the part of...
Persistent link: https://www.econbiz.de/10005627740
Recent empirical research by Mark Taylor and co-authors has found evidence of hybrid dynamics for the real exchange rate. While there is a random walk near equilibrium, for real exchange rates some distance from equilibrium there is mean-reversion which increases with the degree of misalignment....
Persistent link: https://www.econbiz.de/10005795443
Implementing a 'gradualist' policy of monetary contraction, in an open economy with a freely floating exchange rate but with nominal inertia in domestic labor costs, can lead to prompt and substantial changes in the nominal and real exchange rate. One of the virtues claimed for such exchange...
Persistent link: https://www.econbiz.de/10005829875
This paper analyses how the output or unemployment cost of achieving a sustainable reduction in the rate of inflation depends on the structure of the wage-price process and how the "sacrifice ratio" can be minimized. In models where the natural rate is invariant under the anti-inflationary...
Persistent link: https://www.econbiz.de/10005718391
Persistent link: https://www.econbiz.de/10005122314
Persistent link: https://www.econbiz.de/10005224409
Persistent link: https://www.econbiz.de/10005272563
Persistent link: https://www.econbiz.de/10010625602