Similar Search Results

Inflation Targeting Rules and Welfare in an Asymmetric Currency Area

Lombardo, Giovanni - 2016

This paper studies the effect on monetary policy of a non-homogeneous degree of competition across the (two) members of a monetary union. In particular, we assess the welfare loss brought about by the use of a simple interest rate rule that does not take into account such structural differences....

Persistent link: https://www.econbiz.de/10012991378

Parsing Financial Fragmentation in the Euro Area : A Multi-Country DSGE Perspective

Darracq Paries, Matthieu - 2016

The euro area experience during the financial crisis highlighted the importance of financial and sovereign risk factors in macroeconomic propagation, as well as the constraints that bank lending fragmentation would pose for monetary policy conduct in a currency union. We design a 6-region...

Persistent link: https://www.econbiz.de/10012993787

International Effects of Quantitative Easing and Foreign Reserve Accumulation

Kim, Duhyeong - 2021

In this paper, I develop a two-country general equilibrium model with financial frictions to study the global consequences of quantitative easing (QE) and foreign exchange reserve accumulation. In the model, the key financial frictions are limited commitment and differential pledgeability of...

Persistent link: https://www.econbiz.de/10013217789

2020 US neutral rate assessment

Bootsma, James; Carter, Thomas J.; Chen, Xin Scott; … - 2020

This paper presents Bank of Canada staff's current assessment of the US neutral rate, along with a newly developed set of models on which that assessment is based. The overall assessment is that the US neutral rate currently lies in a range of 1.75 to 2.75 percent. This represents a decline of...

Persistent link: https://www.econbiz.de/10012319158

On the credit and exchange rate channels of central bank asset purchases in a monetary union

Darracq Pariès, Matthieu; Papadopoulou, Niki - 2019

Through the euro area crisis, financial fragmentation across jurisdictions became a prime concern for the single monetary policy. The ECB broadened the scope of its instruments and enacted a series of non-standard measures to engineer an appropriate degree of policy accommodation. The...

Persistent link: https://www.econbiz.de/10011996730

Optimal Monetary Policy and the Transmission of Oil-Supply Shocks to the Euro Area under Rational Expectations

Adjemian, Stephane; Darracq Paries, Matthieu - 2009

This paper presents first the estimation of a two-country DSGE model for the euro area and the rest-of-the-world including relevant oil-price channels. We then investigate the optimal resolution of the policy tradeoffs emanating from oil-price disturbances. Our simulations show that the...

Persistent link: https://www.econbiz.de/10014213432

A 'Vertical' Analysis of Monetary Policy in Emerging Markets

Caballero, Ricardo J.; Krishnamurthy, Arvind - 2003

During emerging market crises, domestic agents might have sufficient collateral to borrow from the other domestic agents, but they are unable to borrow from foreigners because the country, as a whole, lacks international collateral. In this setting, we show that an (ex-post) optimizing central...

Persistent link: https://www.econbiz.de/10014118568

To Be or Not to Be in Monetary Union : A Synthesis

Clerc, Laurent; Dellas, Harris; Loisel, Olivier - 2010

Monetary union can benefit countries suffering from policy credibility problems if it eliminates the inflation bias and also allows for more efficient management of certain shocks. But it also carries costs as some stabilization may be feasible even in the absence of credibility, and this may be...

Persistent link: https://www.econbiz.de/10014187934

Inflation targeting rules and welfare in an asymmetric currency area

Lombardo, Giovanni - 2004

Persistent link: https://www.econbiz.de/10010295631

Imperfect Competition, Monetary Policy and Welfare in a Currency Area

Lombardo, Giovanni - 2002

intensiver ist. Die optimale Geldpolitik der Zentralbank der Währungsunion wird ermittelt und mit einer einfachen Taylor … auf die Wohlfahrt und die optimale Geldpolitik. Betrachtet werden zwei Möglichkeiten, wie die Wettbewerbsintensität am … die Geldpolitik effektiver sein, wenn die Länder größere Asymmetrien aufweisen. Diese Ergebnisse legen es nahe, dass die …

Persistent link: https://www.econbiz.de/10010295738