Monetary independence is at the core of the macroeconomic policy trilemma stating that an independent monetary policy, a fixed exchange rate and free movement of capital cannot exist at the same time. This study examines the relationship between monetary autonomy and inflation dynamics in a...

The argument in favor of good policy to explain the Great Moderation is back. In this paper,I am interested in analyzing the role of monetary policy in order to explain business cycle fluctuations in the United States between 1960 and 2012. I build a model with non independent drifting...

This paper demonstrates that retail-level real rigidity is both quantitatively important and consistent with facts on retail pricing. Rich retailer scanner data from NielsenIQ reveals that 1) product demand is lower when prices for other goods in the same store are higher and 2) overall...

"This book examines the Pilsen revolt in Czechoslovakia in 1953, a spontaneous confluence of several individual, mutually incompatible protests, through which different parts of society reacted to the currency reform using different cultural traditions. The author analyzes how each protest...

In Ireland, there was a bank strike that led to a complete shut-down of the main part of the banking system from May to November 1970. The effects of this strike were surprisingly limited. This had led some observers to conclude that trade credit can easily substitute for bank deposits as a...

We study the Ramsey optimal monetary policy within the Golosov and Lucas (2007) state-dependent pricing framework. The model provides micro-foundations for a nonlinear Phillips curve: the sensitivity of inflation to activity increases after large shocks due to an endogenous rise in the frequency...