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A Real Business Cycle model of the UK is developed to account for the behaviour of UK nonstationary macro data. The model, when tested by the method of indirect inference, can explain the behaviour of main variables (GDP, real exchange rate, real interest rate). We use it to explain how 'crisis'...
Persistent link: https://www.econbiz.de/10013102704
This paper examines the impact of different types of oil price shocks on the U.S. economy, using a factor-augmented VAR (FAVAR) approach. The results indicate that when examining the effects of oil price shocks, it is important to account for the interaction between the oil market and the...
Persistent link: https://www.econbiz.de/10013081472
During the globalization process, each country tries to have monetary stability, macro economic discipline, an effective finance system, and a more competitive market mechanism. On the aspects of applied policies and politicians' reliability, their accountability and transparency is far...
Persistent link: https://www.econbiz.de/10013085193
We analyze the importance of global shocks for the global economy and national policy makers. More specifically, we investigate whether monetary policy has become less effective in the wake of financial globalization. We also examine whether there is increasing uncertainty for central banks due...
Persistent link: https://www.econbiz.de/10013155344
monetary policy reaction function of central banks during the Coronavirus Disease 2019 (COVID-19). Since inflation is mostly …
Persistent link: https://www.econbiz.de/10012834400
quickly spread to other countries. The rapid propagation of the liquidity shock and the severe effects of the crisis on stock … shocks? Why were some stocks with similar characteristics and degrees of exposure to a market-wide shock more dramatically … and markets, there are reasons to believe that institutional investors played an important role in transmitting the shock …
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actions are explained solely by its forecasts of inflation and real activity. Finally, we explore the possibility of …
Persistent link: https://www.econbiz.de/10013226548