Economic performance increasingly relies on global economic environment due to the growing importance of international trade and financial links among countries. Literature on growth spillovers shows various gains obtained by this interaction. In this context, this work aims to analyze the...

In this paper, inflation dynamics in the United Kingdom are re-examined. Standard specifications of traditional Phillips curves have tended to overpredict inflation in the recent low inflation, low unemployment era in the United States, the United Kingdom and the euro area. This has stimulated...

The lag in effect of monetary policy contains vital information for the policy evaluation. Allowing for a time-varying treatment effect, we show that inflation targeting effectively lowers inflation for both developed and developing countries. Developed countries reach their targets rapidly with...

This paper estimates a nonlinear Threshold-VAR to investigate if a Keynesian liquidity trap due to a speculative motive was in place in the U.S. Great Depression and the recent Great Recession. We find clear evidence in favor of a breakdown of the liquidity effect after an unexpected increase in...

We test a simple model of exchange rate regime choice with data for 65 non-OECD countries covering the period 1980-94. We find that the variance of output at home and in potential target countries as well as the correlation between home and foreign real activity are powerful and robust...

In this Global VEC study, we assess major economies' global influence through forecast error variance decomposition of real output growth. We find that the US has the greatest impact on an average foreign economy (9.8%), primarily via equity markets and interest rates. It is followed by the Euro...

We study the interaction of multiple large economies in dynamic stochastic general equilibrium. Each economy has a monetary policymaker that attempts to control the economy through the use of a linear nominal interest rate feedback rule. We show how the determinacy of worldwide equilibrium...

This paper evaluates monetary policy effects in a fixed exchange rate regime. A fixed exchange rate regime sometimes suffers from turbulence, owing to speculative attacks or other factors that significantly change the expectations of maintaining such a regime. We, therefore, develop a vector...

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region, forward-looking,DSGE model developed at the International Monetary Fund for policy analysis and internationaleconomic research. This paper documents the incorporation of corporate income, cash-flow anddestination based...

We study spillover effects of US uncertainty fluctuations using panel data from fifteen emerging market economies (EMEs). A US uncertainty shock negatively affects EME stock prices and exchange rates, raises EME country spreads, and leads to capital outflows from them. Moreover, it decreases EME...