Since the international financial crisis, the external environment was an important source of risks and uncertainties, the banking and financial markets of most of the states were marked by successive waves of turbulence, central banks reverted the task of ensuring financial stability to the...

Presentation to the joint convention of the Idaho, Nevada, and Oregon Bankers Associations, Coeur d'Alene, ID, July 9, 2012

Textbook monetary theory holds that increasing the money supply leads to higher inflation. However, the Federal Reserve has tripled the monetary base since 2008 without inflation surging. With interest rates at historically low levels and the economy still struggling, the normal money multiplier...

The standard argument for abstracting from capital accumulation in sticky-price macro models is based on their short-run focus: over this horizon, capital does not move much. This argument is more problematic in the context of real exchange rate (RER) dynamics, which are very persistent. In this...

Remarks before the Puerto Rico Chamber of Commerce Annual Convention, Fajardo, Puerto Rico.

Remarks before the Puerto Rico Chamber of Commerce Annual Convention, Fajardo, Puerto Rico.

June 29, 2012. Presentation. "U.S. Monetary Policy: Still Appropriate." Presented at Dialogue with the Fed, Little Rock, Arkansas.

We use a dynamic stochastic general equilibrium model to address two questions about U.S. monetary policy: 1) Can monetary policy elevate output when it is below potential? and 2) Is the zero lower bound a trap? The model answer to the first question is yes it can, but the effect is only...

This paper aims to deepen the understanding of the transit of traditional to modern monetary system and its impact on economic growth in the Spanish economy over the first half of the nineteenth century. The main sources on which the study of the monetary policy in this period is based, in...

The EMU assigns a marginal role to economic policy and relies on the idea that, if prices are kept constant, there will be an automatic convergence towards long-run equilibrium income. These beliefs represent the theoretical underpinnings of fiscal and monetary policy strategies in Europe. In...