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completely general supply disturbances, using simple monetary rules based only on: (i) the current shock, (ii) the previous … forecast of the current shock, (iii) the forecast for just one period ahead. The optimal rule can be expressed in an infinite …
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changes in the nominal money supply. This paper proposes a shock-absorber model of money demand in which money supply shocks …. The shock-absorber variables significantly improve the estimated short-run money demand functions in every case …
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exchange rate following a money supply shock, compared with speculation based on static expectations. Then, we replace the LM …’ inflation targeting, exchange rate overshooting induced by a monetary policy shock is less pronounced under rational speculation …
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Since the late-1990s, the global economy is characterised by historically low risk premia and an unprecedented widening of external imbalances. This paper explores to what extent these two global trends can be understood as a reaction to three structural shocks in different regions of the global...
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