New information and communication technology (ICT) makes consumers better informed about available products, product quality and prices, which mitigates problems of asymmetric information. The entry of firms is facilitated, competition and economic effiency is boosted and the market powers of...

The purpose of this paper is to examine the merits of monetary policy rules that utilize as their principal target variable the level or growth rate of some aggregate reasure of nominal spending, such as nominal GDP, rather than a monetary aggregate or an index of inflation (either alone or in...

In this paper we spell out the advantages and disadvantages of fixing the exchange rate, with particular attention to the relationship between the pattern of economic disturbances and the exchange rate regime.