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We present a two-country model featuring risky lending and cross-border interbank market frictions. We find that (i) the strength of the financial accelerator, when applied to banks operating under uncertainty in an interbank market, will critically depend on the economic and financial structure...
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average-inflation targeting. This paper examines the properties of average-inflation targeting in a two-agent New Keynesian … under average-inflation targeting and find it to be relatively short for business cycle shocks of standard magnitude and …
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-off between inflation and labor market stabilization. As migration flows are generally inefficient, however, regionspecific …
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household indebtedness and housing price fluctuations compared with a monetary policy rule augmented with house price inflation …
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We analyze the evolution and drivers of inflation during the pandemic and the likely trajectory of inflation in the … near-term using an event study of inflation around global recessions and a factor-augmented vector auto-regression (FAVAR …) model. We report three main results. First, the decline in global inflation during the 2020 global recession was the most …
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