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International transmission of shocks, money illusion and the velocity of money

Sousa, Teresa - 2011

economy. Furthermore we introduce a velocity of money shock revisiting the Quantity Theory of Money within the open economy … paradigm of microeconomic theory and invoked since a tendency to think in nominal rather than real terms becomes evident in the … a productivity shock are increasing in the degree of money illusion and decreasing in the degree of openness of the …

Persistent link: https://www.econbiz.de/10009379782

The welfare cost of inflation with banking time

Gillman, Max - 2018

The paper presents the welfare cost of inflation in a banking time economy that models exchange credit through a bank production approach. The estimate of welfare cost uses fundamental parameters of utility and production technologies. It is compared to a cash-only economy, and a Lucas (2000)...

Persistent link: https://www.econbiz.de/10012012509

Monetary policy and wandering overinvestment cycles in East Asia and Europe

Schnabl, Gunther - 2017

The paper analyses the role of monetary policy for cyclical movements of investment and asset markets in East Asia and Europe based on a Mises-Hayek overinvestment framework. It is shown how the gradual global decline of interest rates has triggered wandering overinvestment cycles in Japan,...

Persistent link: https://www.econbiz.de/10011655779

Limited Rationality and Strategic Interaction - the Impact of the Strategic Environment on Nominal Inertia

Fehr, Ernst; Tyran, Jean-Robert - 2008

important economic problem - the adjustment of nominal prices after an anticipated money shock. Our experiments show that when …

Persistent link: https://www.econbiz.de/10014101526

Inflation expectations spillovers between the United States and euro area

Netšunajev, Aleksei; Winkelmann, Lars - 2014

We quantify spillovers of inflation expectations between the United States (US) and Euro Area (EA) based on break-even inflation (BEI) rates. In contrast to previous studies, we model US and EA BEI rates jointly in a structural vector autoregressive (SVAR) model. The SVAR approach allows to...

Persistent link: https://www.econbiz.de/10010255370

International dynamics of inflation expectations

Netšunajev, Aleksei; Winkelmann, Lars - 2016

To what extent are US and Euro Area (EA) inflation expectations determined by foreign shocks? How do transmissions change during the great recession and European sovereign debt crisis? We address these questions with a flexible structural VAR model of weekly financial markets’ inflation...

Persistent link: https://www.econbiz.de/10011458367

Has Asian Emerging Market Monetary Policy Been Too Procyclical When Responding to Swings in Commodity Prices?

Filardo, Andrew J. - 2014

Commodity price fluctuations in recent years have led to wide swings in inflationary pressures across Asian emerging market economies and have revived the discussion on how monetary policy should best react. We argue that the conventional wisdom for emerging market economies of treating...

Persistent link: https://www.econbiz.de/10013049950