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The paper assesses the extent to which the Group of Seven (G7) has been successful in its management of major currencies since the 1970s. Using an event-study approach, the paper finds evidence that the G7 has been overall effective in moving the U.S. dollar, yen and euro in the intended...
Persistent link: https://www.econbiz.de/10005712534
A major concern surrounding European Monetary Union is that output fluctuations of member countries may become more volatile under a common currency because they will have increased sensitivity to foreign business cycles. This article analyzes the link between exchange rate regimes and the...
Persistent link: https://www.econbiz.de/10005713071
This paper presents a two-country DSGE model with state-dependent pricing as in Dotsey, King, and Wolman (1999) in … time-dependent pricing. In addition, the predictions of the state-dependent pricing model match the business-cycle moments … better than the predictions of the time-dependent pricing model when driven by monetary policy shocks. …
Persistent link: https://www.econbiz.de/10008611002
In this paper, we evaluate the accuracy of the U.S. Treasury Department forecasts of real growth and inflation from 1976 to 1990 for the Group of Seven (G-7) economies. The accuracy of these forecasts is measured against the standard of actual real world growth and inflation as subsequently...
Persistent link: https://www.econbiz.de/10005360626
Persistent link: https://www.econbiz.de/10005379869
We systematically examine the comparative predictive performance of a number of alternative linear and non-linear models for stock and bond returns in the G7 countries. Besides Markov switching, threshold autoregressive (TAR), and smooth transition autoregressive (STAR) regime switching...
Persistent link: https://www.econbiz.de/10005352830
The Social Security systems of the G7 countries were established in an era when populations were young and the number of contributors far outweighed the number of beneficiaries. Now, for each beneficiary there are fewer contributors, and this downward trend is projected to accelerate. To...
Persistent link: https://www.econbiz.de/10005352896
This article argues that high interest rates abroad have substantially depressed private investment in most foreign members of the Group of Seven during the 1990s. Business investment has been especially hard hit and housing construction disrupted, although the effect on housing has been offset...
Persistent link: https://www.econbiz.de/10008456480
Early in 2000, after a decade of economic expansion, growth began to slow simultaneously in the large, advanced economies known as the Group of Seven (G-7)--Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The general slide in GDP growth fueled speculation that a...
Persistent link: https://www.econbiz.de/10005387058
Persistent link: https://www.econbiz.de/10005706855